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LAWSUITS NEWS & LEGAL INFORMATION

Wyndham Worldwide

San Antonio, TX: (Sep-22-07) Attorney General Greg Abbott's office brought a lawsuit against St. Anthony, a San Antonio hotel, and Wyndham Worldwide franchise, over alleged price gouging during 2005's Hurricane Rita. The lawsuit accused St. Anthony of charging customers who fled Rita nearly double the regular rates when they stayed additional nights, even though the hotel had a low occupancy rate. Wyndham Worldwide officials stated that their company did not own or manage the hotel at the time of the allegations and does not manage the hotel, a franchise today. But when the company purchased the Wyndham brand name, it took on certain liabilities, including the St. Anthony case.

In a settlement reached, Wyndham agreed to pay $190,000 in consumer restitution, plus state investigation costs. Wyndham's room rate can't exceed its standard room rate by more than 10% during a declared disaster. The settlement also stated that the hotel cannot collect occupancy taxes from evacuees fleeing a disaster. [WOAI NEWS: HOTEL PRICES]


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Published on Sep-24-07


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