The Warsaw Marriott Hotel, once a symbol of post-communist transition in Poland and a landmark of international hospitality, quietly ended its affiliation with Marriott in recent months.

Opened in 1989, this hotel held historical significance, being the first Marriott or Western hotel in Eastern Europe and the 500th property in Marriott’s global portfolio. Over the years, it hosted numerous high-profile guests, including every U.S. president from Bill Clinton onwards, as well as celebrities like Michael Jackson. Recently, it also accommodated President Biden and Taylor Swift.

However, this once-celebrated establishment has been the center of a complex legal dispute between its owner, Lim Center, and Marriott International. The conflict, which gained momentum during the COVID-19 pandemic, has escalated into multiple legal proceedings both in Poland and internationally.

Dispute Over Pandemic Operations

The origins of the dispute can be traced back to the early months of the COVID-19 pandemic. Lim Center, which owns the building housing the hotel, requested that Marriott suspend operations due to the economic strain of maintaining a near-empty hotel during the global lockdown. Marriott, however, chose to keep the hotel open, allegedly ignoring the financial burden this placed on Lim Center, which had to cover all associated costs, including employee salaries, utilities, and taxes. The operational decision during the pandemic was seen by Lim Center as a major factor in the financial difficulties it faced.

Reportedly Marriott rejected a potentially lucrative outdoor advertising contract during the pandemic without providing a business justification.

Legal and Criminal Proceedings

As the conflict deepened, Lim Center initiated legal actions against Marriott, accusing the hotel chain of engaging in illegal activities that resulted in significant financial harm. According to reports from Polish media, including dorzeczy.pl, Lim Center filed a notification with the Śródmieście District Prosecutor’s Office, alleging criminal activities by Marriott, including the unauthorized withdrawal of funds from Lim Center’s bank accounts. Additionally, an arbitration process between Lim Center and Marriott is underway at the London Court of International Arbitration (LCIA).

The allegations extended beyond the initial pandemic-related disputes, with claims of financial irregularities, breach of contract, and theft of funds. According to Lim Center, Marriott’s actions amounted to the misappropriation of entrusted property—an act that could carry severe legal consequences under Polish law, with penalties ranging from one to ten years of imprisonment.

Government Investigations

The case attracted the attention of the Polish government, which has opened an investigation into the matter. The prosecutor’s office confirmed that the investigation involves misappropriation of funds, with proceedings temporarily suspended while international legal assistance is sought from the authorities in the United Kingdom, Germany, and the Netherlands.

The broader scope of the investigation suggests that the allegations against Marriott may involve not only breaches of contract and financial mismanagement but also potential violations of international financial regulations.

Fallout and Rebranding

As a result of the ongoing legal conflict and serious allegations, Marriott has since removed its brand from the property. The hotel has been rebranded as the Warsaw Presidential Hotel, marking the end of an era for one of the most prominent landmarks in the city. Despite the change in name, the legal proceedings between Lim Center and Marriott continue, with no resolution in sight.

The case is now set to unfold in both Polish courts and international arbitration, with the outcomes likely to have broader implications for hotel management agreements and corporate responsibilities in times of crisis.