Suits fly over failed sale of hotel

Biltmore Vacation Resorts Inc. and Meristar Hospitality Corp. have sued each other in federal court in Las Vegas over a failed deal to sell the St. Tropez All Suites Resort Hotel.

On March 4, Biltmore signed a deal to purchase St. Tropez from Meristar for $30 million. By June 1, this deal had fallen apart.

Meristar sued Biltmore on July 16, alleging that Biltmore was supposed to have deposited $1.1 million in escrow before May 26, but had deposited only $400,000 by that date. As a result, Meristar terminated the agreement on June 1, claiming Biltmore was in breach of the agreement.

On Aug. 5, Biltmore retaliated with a countersuit. The Las Vegas company claims its efforts to get financing for the deal failed after Meristar officials refused to allow them to conduct due diligence on the property. Biltmore asked for $1 million in punitive damages, as well as an order forcing Meristar to refund its $400,000 down payment.

The St. Tropez is at 455 E. Harmon Ave.

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