TORONTO — By Peter & Paul’s is suing Hotel X Toronto and its owner, Princes Gate Hotel LP (PGH), for $60 million after Hotel X terminated the catering-and-entertainment company’s lease. By Peter & Paul’s has run the property’s food-and-drink services since the hotel’s launch in 2018.
According to a story in the Toronto Star, the suit claims By Peter & Paul’s lease for running two restaurants and a catering kitchen was terminated unfairly and Hotel X replaced the caterer with Toronto-based Harlo Entertainment.
The lawsuit claims Hotel X’s owner was motivated to replace By Peter & Paul’s because of Harlo’s links to the NHL. In addition to catering and restaurant operations, Harlo Entertainment also owns a minority stake in the NHL’s Pittsburgh Penguins and Overactive Media, which controls two Toronto-based sports franchises. Harlo Entertainment is a subsidiary of Harlo Capital, a real-estate private equity firm founded by Toronto’s Jeffrey Kimel.
“PGH’s plan to replace PNP with Harlo Entertainment was for the purpose of leveraging Harlo Entertainment’s connections with the National Hockey League and the e-sports industry,” the suit alleges.
PGH is controlled by New York-based hotel entrepreneur Henry Kallan. Through a spokesperson, Hotel X denied it had done anything wrong, saying: “Hotel X Toronto’s actions were in compliance with its contractual commitments and all applicable laws. Since these matters are in litigation we are unable to comment further.”
Hotel X and its owner have until Sept. 4 to file a defence to the suit with the Ontario Court of Justice. None of the allegations in the suit have been proven in court.