WSJ is reporting that the owners of the Marriott Edition Waikiki are sueing to terminate their long term management agreement and seeking damages. They claim Marriott's management incurred significant cost overruns during the development and that they have been running as low as 30% occupancy. They further claim that Marriott nor Ian have lived up to their end of the bargain in creating the Edition brand, and that the hotel has had NOI in the red by about $6mm since opening in q4-2010. This hotel isn't in an ideal location, being west of the big Hilton. Having a relatively unknown brand isn't helping...and their prices, right now offering "specials" of $379 for a not-so-well located hotel doesn't strike me as the right approach to maximize revenue. Who knows if this suit is a negotiating tactic, or if ownership have really just put their hands up and want to move on.