InterContinental Hotels Group, owners of Holiday Inn Worldwide, has been ordered by a court to pay $25 million in damages to an Arkansas franchisee for fraud involving a hotel in Texas.
J.O. "Buddy" House of West Memphis, owner of Hotel Associates, claimed in a lawsuit that InterContinental Hotels Group breached its contract and fiduciary duty with his company over a Holiday Inn Hotel and Suites in Wichita Falls, Texas.
House claimed he lost millions of dollars in renovation costs and loss of value during various changes in ownership and personnel at the world's largest hotel franchiser.
All 12 members of a Crittenden County jury agreed that Hotel Associates was the victim of "deceit," while 10 jurors agreed that House proved he suffered from promissory estoppel, meaning the hotelier lost money after relying on a broken promise from InterContinental Hotels Group, according to verdict forms filed Friday.
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