Oklahoma City Skirvin Hilton's minority ownership files lawsuit
The minority ownership group of Oklahoma City's downtown Skirvin Hilton, led by John Weeman, is suing an affiliate of majority owner and operator Marcus Hotels & Resorts for breach of contract and fiduciary duties.
The minority ownership group of the Skirvin Hilton, led by John Weeman, is suing an affiliate of majority owner and operator Marcus Hotels & Resorts for breach of contract and fiduciary duties.
Neither Weeman nor representatives of Marcus Skirvin Inc. would comment Monday on the litigation, which court records indicate caps years of disputes between the ownership groups.
The March 15 filing in Oklahoma County District Court by Weeman's Skirvin Partners in Development claims his investment group was deprived of contractually agreed to distributions due to disputed charges by Marcus and other accounting disagreements.
The filing seeks unspecified damages, a neutral accounting of operations or a receiver to be appointed for the ownership partnership.
Weeman was the initial developer of the effort to renovate and reopen the Skirvin, which was built in 1911 and closed in 1988.
The hotel, 1 Park Ave., was dilapidated when the city bought it and entered into a redevelopment agreement with Weeman and Marcus Hotels and Resorts. When a third equity partner in the deal fell through, Milwaukee-based Marcus expanded its role from operator to become an equity partner.
Court filings show Marcus owns 60 percent of the operation, while Weeman's group owns 40 percent. The hotel has been widely considered a successful example of public/private redevelopment of a troubled property since it reopened in 2007, with the city steadily recouping its investment and retaining ownership of the land under the hotel.
“The Skirvin Hotel has been exceedingly successful, running an average occupancy since its reopening through Jan. 31, 2013, of 78.43 percent, or 381,381 occupied room nights,” wrote Mark Stonecipher, attorney for Weeman's Skirvin Partners in Development.
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