SPRINGFIELD – MGM Resorts International's partnership with Marriott allows hotel guests to book through Marriott and use loyalty points. But that agreement deprives the Springfield Marriott Downtown in Tower Square of business, a legal complaint claims.
Springfield Marriott Downtown's owners, Springfield Hospitality, sued MGM Resorts last week in Hampden Superior Court over the issue. MGM Resorts is the parent company of the MGM Springfield casino just three blocks away.
Springfield Hospitality, led by local businessman Dinesh Patel , said in the suit it is pursuing claims against Marriott in arbitration, in accordance with the franchise agreement between Springfield Hospitality and Marriott.
Promgoers pose in 2024 at the rooftop gardens of Springfield Marriott Downtown. Mary Quinn
Springfield Hospitality said in court papers that MGM Springfield violates the host community agreement it holds with the state and the city by unfairly competing with it for hotel rooms.
MGM signed the agreement with the city in 2013, five years before opening with 240 hotel rooms in August 2018.
Fears that MGM would cannibalize much of the city's hotel trade influenced negotiations back then. MGM was built with fewer hotels rooms than typical for a casino, an attempt to encourage visitors to stay elsewhere locally.
This 2018 photo shows the inside of a room at the MGM Springfield hotel as opening day approached. (Don Treeger / The Republican) Staff-ShotStaff-Shot
Patel and his partners say they relied on the protections of the host agreement when they undertook $30 million in renovations – completed in 2022 – that were required to obtain and retain Marriott branding for the property.
Massachusetts Gaming Commission spokesman Thomas Mills said the Host Community Agreement is between the city and MGM. He also declined to comment on the litigation.
Louis Ciavarra, a partner in the Worcester office of the law firm Prince Lobel Tye, is representing Springfield Hospitality. He said he is not familiar with any similar lawsuits.
MGM does not comment on any pending litigation, said spokeswoman Beth Ward.
Between brands
Patel and his partners bought the hotel and the rest of Tower Square from MassMutual in April 2018. By that time, Marriott had pulled its branding and the hotel was known simply as Tower Square Hotel until 2022.
MGM Resorts International and Marriott International started working together in 2023. Reservations made for MGM properties – including MGM Springfield – were made available on Marriott.com and the Marriott Bonvoy mobile app.
The two companies also linked their rewards points programs, encouraging loyalty to both brands.
Springfield Hospitality's lawyers keyed in on the shared reservation system in their legal complaint.
"When Marriott Rewards Members use the Marriott Reservation System, they now see MGM as an alternative to Springfield Hospitality's Marriott hotel," Springfield Hospitality said in court papers.
"Given MGM's casino and other attractions, MGM as a business practice, provides free or reduced-rate hotel rooms to patrons. Thus, MGM's access to the Marriott Reservation System creates unfair competition," the court filing says.
Searches by The Republican for Springfield room reservations on the website Thursday returned suggestions for Springfield Marriott Downtown , MGM's hotel and for the Sheraton Springfield Monarch Place in various orders, depending on the date specified.
The Sheraton brand name is now part of Marriott International.
MGM has lauded its deal with Marriott when speaking with investors. The company expects to meet its goal of booking 900,000 room nights through the Marriott channel and saw second room nights increase 31% [the second] quarter versus last year, CEO William Hornbuckle told analysts in an earnings call last month.
Marriott customers consistently spend about $150 per room per night more than all other customers, he said.
"Our exclusive Marriott relationship also continues to drive performance with a higher quality customer," he said.
Overall visitors to Las Vegas is down. Las Vegas saw just under 3.1 million tourists in June, an 11% drop compared to the same month in 202, The Associated Press reported last week. There were 13% fewer international travelers and hotel occupancy fell by about 15%, according to data from the Las Vegas Convention and Visitors Authority.
The city of Springfield has not been notified or copied on the complaint and the allegations, City Solicitor Stephen Buoniconti said in an emailed response to questions. The city takes no position at this time, he said.
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