The Canadian owner of the Sutton Place Hotel name has filed suit against San Clemente-based Sunstone Hotel Investors Inc. over one of its holdings.
Canal Street Grande Inc. charges that Sunstone and Fairmont Hotels and Resorts is unfairly using the Sutton Place name at its Newport Beach hotel.
Sunstone bought the hotel from Newport Beach-based Tarsadia Hotels for $72 million earlier this year.
Sunstone plans to change the name of the hotel to Fairmont Newport Beach. It has hired Fairmont Hotels to manage the hotel.
Sunstone is under way with a $22 million renovation to the guestrooms and public areas that’s set to be finished in early 2006.
Canal Street objects to Sunstone’s use of the Sutton Place name while the renovation continues.
“Sunstone and Fairmont continue to represent the hotel to the trade and public as The Sutton Place Hotel and with staff informing callers that due to the current hotel not being up to Fairmont standards, the hotel will remain The Sutton Place till early 2006 when the renovation is completed,” said Charles Woo, chief operating officer of Canal Street.
Canal Street is seeking a restraining order to block Sunstone from using the Sutton Place name. The company operates Sutton Place hotels in Vancouver, Toronto, Chicago and Edmonton, Alberta.
