New Castle County Sues Hersha Hospitality Management Over Alleged Mismanagement of Hope Center
September 13, 2024
NEW CASTLE – In a move to address alleged mismanagement, New Castle County filed a lawsuit against Hersha Hospitality Management on Monday, September 9, 2024, in Superior Court. The suit targets the former operator of the Hope Center, seeking damages for what the County claims is a breach of their property management agreement.
“New Castle County is dedicated to safeguarding the health, safety, and well-being of the Hope Center’s residents and staff,” stated County Executive Matt Meyer. “This lawsuit is about more than just holding Hersha accountable; it’s about protecting our taxpayers’ investments and ensuring that the Hope Center’s residents receive the quality of care they deserve.”
The County’s complaint outlines that Hersha, which assumed responsibility for the Hope Center in December 2020, failed to meet several key obligations. The agreement had tasked Hersha with staffing, routine maintenance, and overseeing refurbishments. However, the lawsuit alleges significant negligence, resulting in substantial damage to the facility.
Despite a clear stipulation in the agreement for Hersha to cover damages caused by its mishandling, the company has reportedly refused to honor this commitment. As a result, the County is pursuing legal action to recover funds necessary for the repairs.
Aerial view of the New Castle County Hope Center Monday, June 24, 2024; in New Castle, Delaware. Photo by Part 107 pilot Saquan Stimpson
This legal battle echoes similar challenges faced by Hersha Hospitality Management in other locations. Archives reveal that Hersha has previously encountered disputes involving mismanagement and contractual breaches. For instance, in a 2021 case in Atlanta, Hersha was sued for failing to maintain a property up to agreed standards, leading to costly litigation. Locally, in Wilmington, Hersha faced criticism for its handling of a downtown hotel renovation project that fell behind schedule and over budget.
To ensure the Hope Center’s continued operation amid the legal proceedings, the County has engaged Dr. Joseph Cocciardi from Pennoni Associates, Inc., an industrial hygienist who confirmed the building poses no current threat to its occupants. The County has also commenced an extensive cleaning regimen to address any potential concerns, allowing the Hope Center to function uninterrupted while the lawsuit progresses.