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The Waikiki Edition Wants Out and is Suing Marriott and Ian Schrager to Do It

Go To The Hotel's Web Site Where: 1777 Ala Moana Blvd [map], Honolulu, HI, United States, 96815
May 27, 2011 at 9:30 AM | by | Comments (0)

Could this be the final Edition? The owners of the Waikiki Edition are suing both Marriott Hotels and Ian Schrager claiming that the two have done nothing to grow the Edition name or brand and are ultimately responsible for making their hotel "a virtual ghost town," The Wall Street Journal reports.

The owners now allege Marriott was responsible for construction overruns, as well as cost overruns after the hotel began operating. The owners say the hotel has lost $6 million since it opened in October 2010, with occupancy just around 30% in the fourth quarter of 2010, far below the 62% occupancy Marriott predicted in August 2009.

Those are some dismal numbers especially for such a hotly anticipated hotel brand like Edition and with such a dynamic pedigree too. Remember how we nearly lost it when we heard Bill Marriott and Ian Schrager were partnering up together way back in 2007 to create this super boutique brand?

But the owners, M Waikiki LLC, bring up a very good point in their argument to terminate the Edition management agreement--Edition has had enormous trouble getting off the ground. It took forever for this one to open and while the second Edition rolled out fairly soon after (Edition Istanbul this past spring), the growth is still not what it was expected to be. And Honolulu was a rather random place for the first Edition hotel to open. The first one probably should have opened in a major, more accessible city like New York, Miami or London.

M Waikiki also called out Schrager saying they were never able to meet with him to discuss design elements, all but accusing him of being a deadbeat hotel dad. (Schrager told the WSJ that he was still "very active" with Edition.) But there must be something else going on behind the scenes at Edition as two of the top execs jumped ship in March to help Morgans Hotel Group expand their operation.

Whatever the drama, Marriott won't be putting Edition to bed anytime soon. The WSJ reports that Marriott is investing their own money into developing more Edition Hotels. And there are some new exciting locations in the works like Barcelona, South Beach and London. So maybe the Waikiki Edition could just hang loose for a bit? Give the brand a little more time to marinate?

Meanwhile room rates are holding steady at $379 a night.

Hotels mentioned in this story

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