Waikiki Edition owner files for bankruptcy to thwart takeover

The owner of Waikiki Edition hotel filed for bankruptcy today amid a continuing court battle over who should manage the 353-room luxury hotel.

M Waikiki LLC, the hotel owner, said the filing "allows the company to reorganize in an effort to protect its investment in the Modern Honolulu."

"Modern Honolulu" is the new name the owners gave the hotel after ousting Marriott International from its 30-year management contract for the Waikiki Edition at 2 a.m. Sunday.

The bankruptcy filing follows a New York court decision this morning, allowing Marriott to resume its operation of the property at 2:30 p.m. today.

"The Chapter 11 filing allows M Waikiki to reaffirm the termination of the management agreement with Marriott and continue to employ new management at the property," the owner said in a news release.

Benjamin Rafter, president and CEO of Aqua Hotels and Resorts, whose affiliate Modern Management Services is operating the Modern Honolulu, said, "M Waikiki, the owner of the Modern Honolulu, has asked us to continue operating the property."