Hotel sued over price gouging during Texas winter storm
The recent winter storm in Texas forced many residents to seek refuge in hotels but one used the situation for ‘gross exploitation’ of Texans, says the state’s Attorney General.
La Quinta hotel in San Antonio is facing legal action by the state for price gouging.
AG Ken Paxton filed a lawsuit against hotel management company Everyoung Hospitality LLC.
"Companies looking to profit from this tragic event that left millions of Texans without power or water will be aggressively investigated and prosecuted," Paxton said.
It came about after a family of five who booked two rooms were told on the third day of their stay the room rate was being increased by nearly three times.
The family was told it was because of the high demand for accommodations in the area due to the effects of the storm.
The rate surged from $74 a night to $199 anight.
"This gross exploitation of Texans in dire need of shelter during historic low temperatures will not be tolerated," Paxton added.
The lawsuit seeks up to $250,000 in damages for each violation of the state law against deceptive trade practices.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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