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Castillo Grand LLC Wins $44 Million Lawsuit Against Sheraton Operating Corp

November 28, 2011

Castillo Grand LLC has won a $44 million law suit against Starwood Hotels subsidiary Sheraton Operating Corp. New York State Supreme Court Justice Alan Scheinkman ruled that Sheraton had acted in bad faith.

The ruling was for breaches of Sheraton's management contract with owners and developers of the former St. Regis Hotels and Resorts.The two groups had agreed to a contract to bring New York's St. Regis Hotel brand to Ft. Lauderdale's Gold Coast, making it one of the first high-end, luxury hotel and condominium resorts in the beachside community at the time.

The dispute centered around the lack of "St. Regis style" during the construction of the resort. Castillo Grand LLC’s lawyers Pryor Cashman said the lack of St. Regis style stemmed from four major changes in leadership during construction, which caused a change in design direction each time. Pryor Cashman said this disorganization caused the hotel to run millions of dollars over budget and two years behind schedule by the time it opened in 2007.


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