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Old Posted May 29, 2007, 5:47 AM
kornbread kornbread is offline
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Join Date: Oct 2005
Location: Texas
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The reason for the suit was because the company that owned the Hilton had exclusive rights to the Hilton brand names in San Antonio.

This is from a city document (see page 2)
http://209.85.165.104/search?q=cache...lnk&cd=2&gl=us

Just prior to construction, Hilton Hotels Corporation purchased Promus Hotel Corporation, which included the Embassy Suites brand. A local hotel owner holds the exclusive right to the Hilton Hotel brand and operations in San Antonio. That company filed suit to block the development of a Hilton-brand hotel (i.e. Embassy Suites) without their consent. Construction of the hotel was halted. Hixon filed suit against Hilton for misrepresentation within the executed hotel operating agreement.

In anticipation of a timely resolution to these suits, City Council granted extensions of the Construction Agreement on April 26,2001, December 13,2001, and again on June 20,2002. When it became apparent that the legal and development issues were not going to be resolved before another extension would be needed, the Construction Agreement was allowed to lapse June 30,2003.

Today, the lawsuits have been arbitrated and the Embassy Suites brand is no longer being associated with the project. River-ton is eager to move forward with the same project as proposed in 2000. They have requested that the Construction Agreement, River-walk Lease and the License Agreement (which will be addressed in the future) be revised and approved. The other agreements approved by City Council in 2000 remain in effect