Hilton Worldwide Holdings Inc. has filed a lawsuit to recover over $29.3 million from a real estate developer and his affiliated entities, accusing them of breaching contractual obligations. The complaint was lodged on November 19, 2025, in the United States District Court for the Eastern District of Virginia against Sam Hirbod, FMT SJ Holdings LLC, and Eagle Canyon Holdings, LLC.
The case revolves around a financial arrangement dating back to 2018 when Hirbod borrowed approximately $173 million to purchase the San Jose Fairmont hotel in California. Following bankruptcy proceedings in 2021, Hilton was selected to manage the hotel as it rebranded to Signia by Hilton San Jose. To facilitate this transition, Hirbod sought additional financing through a $25 million mezzanine loan from JPMorgan Chase Bank, N.A., which was guaranteed by Hilton under strict conditions that Hirbod and his affiliates would reimburse Hilton if they defaulted.
According to Hilton’s complaint, several agreements were executed ensuring that if Hilton had to cover the mezzanine loan due to a default by Hirbod’s entities, they would be reimbursed promptly without legal hurdles. These agreements included guarantees from FMT SJ Holdings LLC and Eagle Canyon Holdings LLC, as well as personal guarantees from Sam Hirbod himself. However, after a series of defaults starting in June 2024 led Hilton to pay off the mezzanine loan amounting to $29.3 million plus interest and fees, the defendants allegedly failed to honor their reimbursement commitments.
Hilton argues that despite serving notices demanding payment in mid-2024, none of the defendants have responded or fulfilled their obligations under these contracts. The company is seeking not only repayment of the principal amount but also interest accrued since then along with attorneys’ fees and other related costs.
Representing Hilton Worldwide Holdings Inc., Craig C. Reilly alongside Andrew S. Tulumello and Chantale Fiebig from Weil Gotshal & Manges LLP are pursuing this case before Judge(s) presiding over Case ID: 1:25-cv-02104.
Source: 125cv02104_Hilton_Worldwide_Holdings_Inc_v_Hirbod_Complaint_Eastern_District_Virginia.pdf
