From today's Wall Street Journal is a story on how Hilton was served with a Grand Jury Subpoena in regards to using confidential documents and stealing employees from Starwood for the development of their new brand - Denizen.
This is a significant turn of events because it now becomes a federal case, involving the US Attorney's Office and not just a lawsuit between two competitors.
Because of this move, Hilton on Friday suspended all development of their Denizen brand, put Ross Klein, Amar Lalvani and also the majority of Hilton's Luxury and Lifestyle Division on paid administrative leave pending the the outcome of "Hilton's investigation".
This could very well become the beginning of the end of the Denizen brand, as well as the careers of Ross Klein & Amar Lavlani in the hotel industry. It's ashame that it had to come to this - Amar was very good in the development end and Ross - while exactly what he brought to the table can be disputed - is definitely one who is able to create hype in the marketing world.
This could also set back Hilton;s playbook significantly over the next few years as they will have a huge bruise on their face from both developers, as well as the public for playing unfairly.
I've spoke to Ross & Amar personally in the past and always envied their positions in the Hotel Industry - in a way I looked up to both of them because they were where I wanted to be: leading the development and creation of some great hotel brands (W, St Regis, Luxury Collection - and then Hilton's Prestige Porfolio).
I'm still reserving final judgment on their actions, but it leaves a bad taste in my mouth that they'd be involved in hurting their previous company for their own personal gain. If there is one thing I've always learned in the business world is don't burn your bridges and always be honest and truthful about things, because it always comes back to bite you in the end.
Two items that they seemed to forgotten about, which is a shame.
andrew@alconic-inc.com
Andrew Calvo is a 26 year old Commercial Real Estate Advisor in New Jersey. I live in Tinton Falls, NJ. This blog is about my passions - primarily hotels, commercial real estate, and development, etc.Since I have been in High School Ifve had numerous jobs, but the field which has always interested me is Real Estate, Hotel Development and Construction. I consider myself a zealot in that area - I try to absorb as much as I possibly can, take the experiences that I learn, or read about and use them in my life. www.passionsofazealot.com/2009/04/21/work-is-suspended-on-hiltons-denizen-brand 
