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Harming the Business of its Partners in Poland: Serious Charges Being Faced by the Marriot

We examine some of the serious charges being faced by the Marriot.

Posted: 27th October 2023 by Finance Monthly
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The news of the Lim suing the Marriott hotel has been around for some time. According to the lawsuit filed by the Lim Center, Marriott used the provided funds meant for subsidiaries during the COVID-19 Pandemic. They also claim that it was funding the Marriott operations at the time.

Even after the breach of trust and corruption, the Marriott Hotel still operates in the centre of Warsaw, Poland. In addition, Lim also claims that Marriot denied their request to place a billboard even after securing a contract to rent the space. The failure to secure this deal also caused further loss for the Lim Center during the pandemic.

In addition, the Lim Center also suggested that remaining open during the pandemic, even with a limited capacity, was detrimental to their business. They believe that losing business would have been a better decision both economically and socially.

The local District Attorney’s Office in Warsaw is overseeing the claims by the Lim Center against the Marriott. The issue is anticipated to continue until next year. If yes, the Lim Center can risk losing even more revenue along its journey.

One of the most publicized cases involves Marriott’s refusal to help business partners find ways to overcome their COVID-19 losses. On the contrary, the hotel chain is facing heat and judgment due to signs that it was not paying its bills during the challenging circumstances of the pandemic.

Loss during Covid

The pandemic surprised individuals and businesses alike. It also highlighted the red flags that had been there all along. Besides the situation in Poland and the legal claim filed by the Lim Center, at least two Marriott Hotels are suing Marriott and the insurance company Zurich.

According to these claims, both Marriott and Zurich failed to keep their word and provide coverage for loss through the challenging pandemic times. Their claims aim to find compensation for the losses sustained during COVID-19.

The businesses first turned to Zurich to file a business insurance claim. Zurich rejected this claim and pointed out an exclusion clause in the contract. However, the hotel owners claim that the exclusion clause was never a part of their original agreement. Afterwards, the hotel owners turned to Marriot but faced a similar response. 

Investigation in Poland

Private hotel owners understand the benefits they can yield from joining hands with a well-known hospitality chain. However, working with big yet irresponsible brands can also become a nightmare of endless financial troubles. 

Marriott’s Criminal Investigation in Poland is one of the most common examples of how small management companies can find themselves in trouble even after working with the best corporate giants in the field. Such circumstances can make or break an international company’s reputation.

The ongoing lawsuit by the Lim Center against the Marriott in Poland states that the company embezzled funds that originally belonged to Lim Center – the owner of the building where the hotel operates. This lawsuit has raised many questions about the company’s global reputation.

The international evidence of lack of accountability and communication has led Marriott into hot waters. Although the case is still undergoing investigation by the Polish authorities, the Marriot will likely face severe legal and financial challenges in the future. 

Marriott Bonvoy Program 

There is a history of Marriott being unwilling to help their partners in uncertain times. Yes, these issues were highlighted the most during and after the pandemic, but their history goes beyond that. The Marriott Bonvoy scheme set several examples for that.

A Thailand-based hotel sued Marriott due to a breach of trust and corruption over the guests redeeming the Marriott Bonvoy rewards. This hotel claims that the Marriott reduced the prices paid to the hotel when a customer granted a free night through its rewards.

 According to these Thailand-based hotels, the Marriot was only paying a third of the actual value. The Marriott has pushed back these allegations by pinning the problem on the Minor. However, Marriott never denied the accusation of reducing the prices.

The Final Word

Being a giant in the hospitality industry, the Marriott has a lot of impact on how other hotels operate and what they idealize. Choosing and implementing wrong practices can have broader implications for businesses of all scales in the industry.

The image of the Marriot after several legal claims and irresponsible behavior, is nothing less than tarnished. The damage for Marriott is not limited to financial and legal problems alone. They have also lost public confidence, which may be the hardest to regain.

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