Sheraton Will Appeal Ruling On Fort Lauderdale Development Lawsuit

Sheraton Operating Corporation, an affiliate of Starwood Hotels & Resorts Worldwide, Inc. HOT, said today that it would appeal the ruling of a state court in White Plains, NY, that awarded damages to Castillo Grand, LLC, the owner of the former St. Regis Hotel and Residences in Ft. Lauderdale . The case involved competing claims for breach of contract relating to the construction, interior design and delayed completion of the Hotel and the subsequent termination of the management contract between the parties. The Hotel belatedly opened in May 2007, but ceased to be managed by Sheraton or affiliated with the St. Regis brand of luxury hotels and resorts in August 2008. The state court ruling came more than a year after a nine-week trial in mid-2010. The protracted, five-plus year litigation began in federal court and ended in the New York state court system. The Hotel owner, Castillo, had sought more than $104 million in damages. However, New York State Supreme Court Justice Alan D. Scheinkman awarded approximately $32 million in damages, plus interest, to Castillo and $555,000, plus interest, to Sheraton for its claims against Castillo.