NEW YORK (TheStreet) -- Marriott  (MAR - Get Report) stock is advancing 1.65% to $70.27 in late-afternoon trading on Tuesday, as owners of hotels in Chicago and New York challenge the company's proposed acquisition of rival Starwood Hotels & Resorts (HOT). 

Cityfront Hotel Associates Limited Partners, the owner of the Sheraton Grand Chicago, and Dream Team Hotel Associates, which owns the Westin Times Square in New York, sued the two companies in New York State court earlier today, alleging that the merger would unfairly weigh on their business, Bloomberg reports.

Starwood owns the Sheraton and Westin brands.

The plaintiffs claim that the merger would violate exclusivity agreements that forbid Starwood from owning, franchising operating or managing other hotels within a set geographical area around the two hotels, Bloomberg adds.

The lawsuit seeks to block the merger from being finalized.

Earlier this year, Marriott won a bidding war to purchase Starwood in a deal valued at $12.9 billion based on Monday's closing prices. The transaction would create the world's biggest hotel operator by room count. 

Starwood shares are up 1.82% to 482.74 in afternoon trading.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Marriott's strengths such as its impressive record of earnings per share growth, revenue growth, good cash flow from operations and increase in net income outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: MAR

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.