Starwood ordered to pay $3m for spying on employee

by Melanie Nayer on

File this under: What were they thinking?!?

Starwood Hotels and Resorts was found guilty of spying on a New York employee and has been ordered to pay $3 million in damages.

Apparently, the hotel set up a hidden camera to watch 46-year-old Moises Mendez, a baker at the Westin Hotel at Times Square, following repeated complaints from Mendez that he was being discriminated by the hotel.

Seems the only way the hotel’s HR department could be certain the claims were legitimate was to install a hidden camera near Mendez’s workstation in the kitchen and watch him. When Mendez found out what was going on, the situation took a turn for the worse.

After a month-long process, a jury found Starwood guilty of unlawful retaliation and ordered the hotel to pay Mendez $1 million for his emotional distress, pain and suffering, and $2 million in punitive damages. After all that, Mendez said in a statement: “I look forward to going back to work today.”%Gallery-67351%

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

by Tom Johansmeyer on

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.

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Starwood bets on Hollywood allure

by Tom Johansmeyer on

What do you do when lenders take over two of your hotels, as your coping with the worst recession in seven decades? Well, if you’re Starwood Hotels, you make a $350 million bet with a single property from your W line. The hotel opened on January 15, 2010, and it’s banking on the reputation of Los Angeles as the center of the entertainment world. Located on Hollywood Boulevard and Vine Street, the new W Hotel hopes to attract star-struck tourists who want to get up close and personal with the movie industry.

The only problem is that fewer and fewer people are heading out to Los Angeles, which is putting a bit of a squeeze on the new property. There’s an opportunity hidden in the situation, however. Carlos Becil, W’s North American vice president, says, “When we come out of this down cycle we’ll own the upswing with all these newer hotels,” Becil said to Bloomberg News.

The financial crisis has been particularly hard on the W chain. The W San Diego was taken back by its lenders after Sunstone Hotel Investors, which had owned the property, couldn’t get the terms of its $65 million securitized mortgage changed. The W New York Union Square was bought by Dubai World in 2006. Well, it missed a payment, which wound up pushing the property onto the auction block back in December. Dubai World also has an interest in the W Washington, D.C., a loan on which is 30 days delinquent. The debt servicer and borrower are working on a solution.

Hotels working on technology that could eliminate front desk check-in

by Melanie Nayer on

Imagine checking into your hotel room from your WiFi-enabled flight, or even in the cab on your way to the hotel from the airport. According to a story in USA Today’s Hotel Check-in column, that’s the concept some hotels are working on.

Starwood Hotels has been at the forefront of this high-tech endeavor with their Aloft Hotel in Lexington, Mass. You have to be a member of the Starwood Preferred Guest loyalty program to test it out (the program is free to join). You’re then mailed a keycard with RFID capability, and what happens next could eliminate a lot of hassle for rushed guests.

From USA Today:

“On the day you’re set to arrive at the Aloft Lexington hotel, you’ll be sent a text message to your Blackberry, iPhone or other mobile device disclosing your room number at the Aloft. When you arrive at the hotel, you’ll then be able to go straight to your room, using your keycard to unlock the door. The door lock will recognize the RFID card when its nearby, so there’s no need to drop your bags at the door to remove the card from your wallet; instead, you’d be able to simply tap your wallet on the lock.”

We want to know: What do Gadling readers think about this high-tech concept? Would you rather pass by the front desk and head straight to your room, or do you like the personal attention at the check in desk? Let us know your thoughts.

Starwood accuses Hilton of corporate espionage

by Tom Johansmeyer on

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]