Marriott Agrees to Drop Lawsuit Over Waikiki Hotel Takeover

Marriott International and the owner of The Modern Honolulu hotel in Waikiki have reached a settlement in their court case over the property, which was formerly the Waikiki Edition before Marriott’s management was ousted on Aug. 28. M Waikiki LLC will pay Marriott an undisclosed amount, although previous rulings in U.S. Bankruptcy Court point to $20.7 million as a potential payment. In return, Marriott will drop its lawsuit and opposition to a bankruptcy reorganization plan for the hotel. Marriott had a 30-year contract to manage the property and used it to launch the company’s trendy Edition brand, but the 353-room hotel struggled with low occupancy after opening in October 2010. Less than a year later, it had lost more than $8 million. The hotel, which features a 9,200-square-foot ballroom, is currently managed by Aqua Resorts and Hotels. It should emerge from bankruptcy later this month. bizjournalis.com