Azorim Investment, Development and Construction Ltd. (TASE: AZRM) and Starwood Hotels and Resorts Worldwide Inc. (NYSE: HOT) have resolved their lawsuit in an out-of-court settlement. Starwood dropped its NIS 130 million claim has part of the settlement. The parties have asked the Tel Aviv District Court to withdraw the lawsuit.
In the statement of claim, filed in early 2008, Starwood claimed that Azorim was in breach of contract, signed in February 2007, under which Azorim undertook to transfer management of six hotels that it owned to Starwood, the owner of Sheraton hotels: the Sheraton Moriah in Tel Aviv, Eilat and Tiberias, the Sheraton Plaza in Jerusalem, Moriah Classic Dead Sea, and Moriah Kedem Jerusalem, all fully owned by Azorim Moriah Israel; and two partly-owned hotels, the Sheraton City Tower in Ramat Gan, and the Herod's in Eilat.
Starwood claimed that Azorim stipulated that Starwood would manage the hotels for 35 years, in exchange for management fees, beginning in July 2007.
In its statement of defense, Azorim said that it all that it could to meet its commitment to Starwood.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2009
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