Olympic Organizer Sues Hotel Operator

VANCOUVER, B.C. (CN) - The Vancouver Organizing Committee for the 2010 Winter Olympics claims it was blindsided by a hotel operator that failed to honor a lodging agreement after the hotel went into foreclosure years after inking the deal.

Canada Sincere Industry Co. operated the Garibaldi Budget Inn and agreed in 2003 to provide reserved rooms during the games for VANOC's guests, VANOC claims in B.C. Supreme Court.

But Ed Sylvan, the hotel's manager, allegedly didn't tell VANOC that the inn was up for sale and then bought by Silau Holdings in 2007. VANOC was able to reach a similar deal with Silau, the complaint says, but the inn was later foreclosed on when the mortgage went into default.

The committee claims it paid Sylvan more than $153,000 a few months before the hotel was sold to a new owner, Squamish Budget Inn.

The new owner allegedly refused to honor the agreement and forced VANOC to incur "costs related to finding and renting alternative lodging for the games period in lieu of the [Garibaldi Budget Inn] guest rooms, and in particular ... the costs of printing, mailing, signs, transportation, storage, telephone and other costs associated with the displacement."

VANOC is represented by Jenkins Marzban Logan.

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