Feds Try to Halt Starwood Suit of Hilton to Chase Criminal Charges

Usually, it’s what goes on inside the hotels that is mysterious. Illicit trysts, quiet business deals and the occasional rendez-vous of spies (very occasional, I suspect) are what we’d love to believe happens in behind the closed doors of hotels up-market and down. The reality, however, is far more interesting. There is plenty of espionage going on in the hotel world, but it’s the hotels themselves – not he guests – who are getting in on the action … and now the feds are involved.

A lawsuit filed by Starwood Hotels against competitor Hilton may have to wait for a bit. Federal prosecutors believe that the civil litigation could impede the criminal investigation. The U.S. Attorney’s Office is pursuing charges that could include conspiracy, computer fraud, theft of trade secrets and interstate transportation of stolen goods against Hilton, as well as two executives that that the company hired from Starwood.

According to the filing by the U.S. Attorney’s Office, “The government seeks a stay of discovery pending resolution of the criminal investigation.”

Starwood alleges that Hilton swiped confidential documents in an attempt to develop an offer that would compete with Starwood’s W Hotels brand. Before the civil effort can be put on hold in favor of the criminal investigation, a judge will have to sign off on the motion.

Hilton’s response to the filing, according to USA Today is: “Hilton Worldwide continues to fully cooperate with the Government’s investigation and supports the Government’s motion to stay discovery in the Starwood civil litigation matter.”

Not exactly earth-shattering.

%Gallery-67351%

W Hotels glams up for Hollywood debut

Like any good glam girl, the W Hollywood was prepped, primped and sitting pretty for its Hollywood debut. Starwood Hotels and Resorts Worldwide Inc. rolled out the red carpet yesterday for the newest hotel in the bunch, the 305-room W Hollywood hotel.

Located a stone’s throw from some of the most famous stars in Tinsletown, (at the intersection of Hollywood and Vine) the W Hollywood opened with plenty of fanfare and some help from famous friends. Jimmy Kimmel and Robin Thicke are rumored to be stopping by the hotel today to show their support for the W’s “civic recognition event”.

The W Hollywood has been in the works since the late 1990s and reports claim it came with quite a price tag: nearly $350 million was spent building this beauty. For those guests who don’t ever want to leave, the W Hollywood has added 143 residences priced at $500,000 to $7 million.

I did a quick check on the W’s site and found room rates starting at $259 for a king-sized “Wonderful” room and $599 for a “Marvelous” room. If you want something a little more spectacular, shell out $2,000 to $4,000 for a suite measuring 1,650-square-feet.

Meanwhile, the W also unveiled its first property in Asia, the W Retreat Koh Samui. The W Retreat Koh Samui and The Residences at W Retreat Koh Samui create the first residential project for W Hotels in Southeast Asia. The property comprises 17 branded residences as well as the hotel comprising 75 villas.

Starwood accuses Hilton of corporate espionage

Two of the largest hotel chains in the world are locked in battle — legal battle. Starwood Hotels has accused 44 of Hilton‘s top executives of stealing trade secrets. Christopher Nassetta, the CEO of Hilton, is alleged to have known about this activity, according to an amended complaint that Starwood filed with the Manhattan federal court. The object of affection thievery was the luxury category of Starwood’s portfolio, including the St. Regis, W and The Luxury Collection.

According to Starwood’s complaint, Nassetta is said to be under “intense pressure” to deliver the financial returns expected by the Blackstone Group, the private equity firm that paid $26 billion for Hilton in 2007. The complaint further states, “Intense pressure — whether from Blackstone or otherwise — is no excuse for corporate espionage, and it is no excuse for the massive theft and widescale use of confidential and proprietary Starwood information.”

According to a USA Today report, Hitlton’s spokesman, Aaron Radelet, declined to comment, because the company doesn’t discuss pending litigation.

Starwood is looking to appoint monitors to make sure that Hilton complies with all injunctions, and it’s also seeking a court-imposed “time out” period during which Hilton wouldn’t be able to move forward with its luxury brands.

[Photo by p c w via Flickr]

Inside Virgin America’s “Stay Golden” launch event (photos)

I looked around and tried to absorb what was unfolding before me.

VIP’s and Virgin employees mingled on the patio of the beachfront W Fort Lauderdale. Nearby, a reality TV crew set up a shot for a new series about the lives of Virgin America flight attendants. Lights and loud music infiltrated the senses. It was a perfect backdrop for television, even though it didn’t quite feel like reality.

And in a sense, it wasn’t reality; but merely a splash of Richard Branson’s reality.

Then, somewhere between the gold-suited synchronized swimmers, the beverages sprinkled with gold, and the musical performance from Santigold, it hit me: Virgin America is dedicated to (and very good at) one thing. They design brilliant experiences… and in their world, there’s no such thing as overindulgence.

The morning started with an early but high-energy flight out of San Francisco with press, contest winners, and CEO David Cush all onboard. I stepped into the cabin of the A319 and immediately appreciated the attention to detail in the environment.

Stylish mood lighting. Glossy white plastic seatbacks. Bright touchscreens. AC outlets at every seat. Fast (and temporarily free) wifi. I think I even overheard someone say “It’s like flying inside of an iPod!”.

Even the safety video was creative and entertaining; and apparently so different from the standard that the FAA had a hard time approving it. To me, that says it all. Virgin America knew from the beginning what type of experience they wanted to offer, and has executed that vision despite strict regulations and an unfavorable market.

%Gallery-78475%

As the day went on, it soon became clear that the favorite buzzword was “startup”. Anybody from the company speaking about the airline referred to it as a startup, because it’s truly their advantage over the competition. They’ve been able to execute this vision by being nimble, building from the ground up, and yet staying in line with the ethos of the Virgin brand.

Many other airlines have fallen short with the in-flight experience because of a lack of vision or a reluctance to invest in overhauling their cabins. VX has done it right, and offers fares at the right price. Which is fine until you go wild with your credit card on the in-flight payment system; all on demand movies, food, and snacks cost a small fee, though live satellite TV and gaming is free.

Upon landing in Fort Lauderdale, our plane was met by Richard Branson and his billion dollar smile, calmly waving from the top of a water-spraying fire truck. It was a completely appropriate reception – why wouldn’t Richard Branson be on top of a fire truck to kick off the launch of two new routes?

%Gallery-78557%

The disembarking was followed by speeches from the CEO, Branson, and FLL Airport authorities expressing their pleasure with Virgin America’s arrival. The tarmac was lined with music, models, press, a large crowd of spectators… and enough Patron for everyone. Nothing but fun.

The energy from the tarmac eventually transferred to the main event, where I had my moment of realization about Virgin America’s brilliance. I almost laughed at the thought of it. Had I ever heard of Jet Blue throwing elaborate parties to celebrate the launch of a new route? No. Is there anyone that could even try to pull this off like Branson could? Not with the same style.

Virgin has the sex appeal that few other corporations can match, and has certainly succeeded at bringing a unique and enjoyable experience to the low-cost domestic market.