Marriott Hotel Services Inc. claimed the hostile takeover of the Waikiki Edition initiated by Aqua Hotels resulted in a multimillion-dollar loss and damaged Marriott’s reputation.

Marriott Hotel filed suit Monday against Aqua Hotels and Resorts Inc., alleging a hotel management agreement between M Waikiki, the hotel’s owner, and Marriott, worth more than $65 million, was stolen by Aqua in the takeover initiated in August.

Modern Management Services LLC, an affiliate of Aqua Hotels, and W. Christian Oles, former security director of the Edition, were also named in the lawsuit filed at U.S. District Court by attorney Paul Alston of Alston Hunt Floyd & Ing, who is representing Marriott.

In the federal complaint, Marriott alleged Aqua held secret negotiations of a hostile takeover of the Edition, the first of Marriott’s new Edition brand, which was designed by famed hotelier Ian Schrager of New York City’s Studio 54.

The complaint alleges that Aqua saw an opportunity to negotiate a deal with M Waikiki after news reports publicized a dispute between M Waikiki and the Marriott. In May, M Waikiki filed a lawsuit against Marriott in New York Supreme Court alleging Marriott was in breach of a management agreement. The agreement was to generate Marriott management fees of more than $65 million over 30 years.

The complaint alleged Aqua secretly negotiated with M Waikiki this past summer and offered it a shorter-term agreement and a base management fee of 2 percent of gross revenues, lower than Marriott’s base management fee of 4 percent.

On the eve of what Marriott described as a "forceful and hostile takeover," Marriott alleged Aqua’s senior executives signed in as fake hotel guests to prepare for the takeover. Aqua enlisted Oles, then director of security at the Edition, to assist.

At about 2:30 a.m. Aug. 28, Aqua’s management team entered the hotel to take over, changing the hotel’s name to "Modern Honolulu." Dozens of security guards escorted Marriott managers off the property. Aqua obtained access to computers and paperwork that contained sensitive information of guests and potential sales. Guests abruptly received letters slid under their doors informing them of the new hotel management.

Benjamin Rafter, CEO and president of Aqua Hotels, said, "I think Aqua believes the claims are without merit, and will defend the lawsuit vigorously. We and our legal team will be reviewing the lawsuit to determine the next course of action."

Oles, who was terminated by Marriott in August and now works at Modern Honolulu in a similar security position, could not be reached for comment.