Palm Beach Hotel Debacle Results in Lawsuit

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Trouble is brewing in the barrier-island town of Manalapan. On July 7, the owner of luxury hotel Ritz-Carlton Palm Beach, The Lewis Trust Group, filed a lawsuit against the brand.

The Lewis Trust Group claims that Ritz-Carlton was mismanaging the hotel, leaving the owner to cover losses and make payments for up to four times the amount it was expected to make. The lawsuit says, “instead of operating the hotel for the benefit of the owner, (Ritz-Carlton) has effectively converted the hotel into a cash cow for Ritz-Carlton, [and] its parent company Marriott.”

The Lewis Trust Group is suing Ritz-Carlton and Marriott International, Inc., on multiple charges, including breach of contract, breach of fiduciary duties, fraudulent and intentional misrepresentation and unjust enrichment.

According to a Ritz-Carlton representative, the brand and Marriott not only disagree with the allegations against them, but plan for the hotel to remain a Ritz-Carlton.

The Lewis Trust Group, who purchased the hotel in 2003, is suing to end its contract and win damages as well.

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