Jenner & Block

Firm Wins Victory for Marriott when Court Affirms Denial of Preliminary Injunction

Jenner & Block won a victory for client Marriott International Inc. in a dispute over a $14 billion merger with Starwood Hotels & Resorts Inc.  Two rival hotel owners, Cityfront Hotel Associates LP and Dream Team Associates LLC, claimed the deal would violate exclusivity agreements protecting their properties from neighborhood competition.  In June, a New York Supreme Court judge denied their request for a preliminary injunction, saying that the two owners waited too long to bring the action.  On September 27, 2016, the New York Supreme Court Appellate Division First Department unanimously affirmed the denial of the preliminary injunction, holding that the court “providently exercised its discretion in denying the application to enjoin the announced hotel chain merger for failure to demonstrate that the harm would be irreparable.”  Meanwhile, the merger – which will provide more than 1.1 million rooms worldwide – cleared its last regulatory hurdle to close on September 20.  The team representing Marriott included Partners David A. Handzo, Lindsay C. Harrison and Michael W. Ross and Associates Previn Warren, William K. Dreher and Samuel C. Birnbaum.