In case you think that data breaches are never a major legal issue in commercial real estate, Marriott International and Starwood Hotels & Resorts are still dealing with the aftermath of three significant breaks that took place between 2014 and 2018 and collectively affected more than 344 million customers globally.

According to the Federal Trade Commission and a proposed settlement order, Marriott and its subsidiary, Starwood, failed to "implement reasonable data security." They allegedly deceived customers by claiming to have "reasonable and appropriate data security."

Marriott's acquisition of Starwood made it responsible for the latter's data security problems. Overall, Marriott manages and franchises 30 brands across more than 7,000 properties across 131 countries and territories. It is the largest hotel chain in the world with more than 1.1 million rooms, controlling about 7% of all hotel rooms worldwide.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.