The lawsuit claims that has created confusion among the public, and that the use of the name irreparably harms the reputation of the Hotel Morgan.
The Hotel Morgan now accuses Bhatia of "intentional, willful and malicious intent to trade on the good will associated with the plaintiff, to the great and irreparable injury of plaintiff."
Its conduct, the lawsuit says, "tarnishes and degrades the positive associations and prestigious connotations" of the Hotel Morgan.
The lawsuit alleges trademark infringement, trademark dilution, unfair competition and cyber-piracy.
It asks Judge Irene Keeley to order Bhatia to stop using the name Hotel Morgantown, and to remove it from all websites, Internet tools and marketing materials, including signs, flyers, menus, room keys and napkins.
The lawsuit also asks Keeley to order the hotel to change its name to one that is unlikely to confuse consumers. It says the new name should not include the words "hotel," "Morgan" and "Morgantown."
The complaint further demands that Bhatia be required to sell his domain name to the Hotel Morgan for $10, cancel its name with the Secretary of State's Office, and pay unspecified damages.