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Hilton Halts Denizen Project
Slapped with a federal grand jury subpoena seeking documents related to its new Denizen Hotel chain, Hilton today said it was putting the project on hold and would put executives in charge of the project on paid administrative leave.
The top execs on the project, Ross Klein and Amar Lalvan, came to work for Hilton from Starwood Hotels. Starwood claims in a lawsuit that Klein and Lalvan stole proprietary information, particularly pertaining the company's popular W brand of hotels.
Denizen was slated to be Hilton's 11th chain of hotels, and was being designed to compete with hotels like the W -- high-end properties that appeal to a younger, hipper demographic.
Besides Klein and Lalvan, Hilton also placed its luxury and lifestyle development team on leave, the Wall Street Journal reported.
