AUDITOR WANTS DATA FROM AIRPORT HOTEL

Official says in a letter that city doesn’t know how much the Westin is making.

The city may own the massive glass-winged hotel built next to the terminal at Denver International Airport, but local officials still don’t know for sure how much money its operator is making.

That is the gist of a letter sent Monday by Denver Auditor Tim O’Brien to Mayor Michael Hancock asking that city attorneys “take action to require the Westin to comply with Denver law and the terms of its lease.” O’Brien alleges that Westin, a hotel brand owned by Marriott International, has breached its contract with DIA by failing to provide key information sought by auditors.

“If I can’t see this important information,” O’Brien said in a statement, “I am certain the airport is also not monitoring the money as it should. That’s a problem for all taxpayers who care about the asset they helped pay to build.”

The 519-room hotel opened in late 2015 as part of a $719 million project that also included the airport’s transit center. The auditor’s letter marks the latest escalation of a fight for records that began more than a year ago.

In a statement, Hancock’s office said it expected any city contractor to uphold its terms and cooperate with other city agencies. “Mayor Hancock and Auditor O’Brien have met to discuss this issue,” the statement says, “and the mayor has directed the City Attorney’s Office and (the airport) to review his request.”

O’Brien issued an audit report highlighting Marriott’s resistance in February. It said the hotel chain declined to provide information it considers proprietary, at least not

publicly — a stance allowed by its contract with DIA.

But that provision conflicts with the city charter, which gives the elected auditor broader power to publicly audit city contracts.

O’Brien says it has been impossible to verify Westin’s reported revenues, which reached $51.9 million in 2018. That is important because once hotel income reaches a certain threshold, Westin must share a cut with DIA to help repay project bonds.

Marriott officials signaled to a City Council committee earlier this year that they would provide more information. And an assistant city attorney said the city would begin talks aimed at amending the contract to comply with the city charter’s open-books requirement.

O’Brien’s statement Monday said Marriott still hadn’t provided “a majority of the requested records.”

But the City Attorney’s Office is “still actively negotiating new terms” to the contract with Marriott that “will address the auditor’s concerns” and other issues, said Ryan Luby, an office spokesperson.

Attempts to reach Marriott for comment were unsuccessful Monday afternoon.