Tag Archives: Resorts

Hospitality Industry Legal Update: “Class Action Lawsuit Goes After Hotels That Fail to Disclose Resort Fees”

“Brian Kabateck, an attorney for Brin, said he has heard from many hotel guests who have groused about being surprised by resort fees on their hotel receipts. “This is really an insidious practice,” he saidresort fees lawsuit…Although the U.S. Department of Transportation regularly imposes fines against airlines that fail to disclose the full airfare, there may be too many hotels in the U.S. for the Federal Trade Commission to enforce the disclosure law on hotels, Kabateck said.”

If you have ever glanced at your hotel receipt only to be stunned to see an unexpected $28 resort fee, help may be on the way.

A Studio City man has filed a class-action suit against a Las Vegas casino, claiming that the resort is guilty of false and misleading advertising for failing to clearly disclose a mandatory resort fee at the time that he booked the room.

The practice is not unique to Las Vegas.

Undisclosed resort fees are such a prevalent problem that the Federal Trade Commission sent out a letter to 22 hotel companies in 2012, warning that their online reservation sites “may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.”

For more: http://lat.ms/1HN6ia9

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Filed under Crime, Guest Issues, Hotel Industry, Management And Ownership, Risk Management

Hospitality Industry Property Risks: Florida Resort Building Damaged As “Large Sinkhole Opens Up”; 30 Percent Of Three-Story Structure Collapses

“…(guests) could hear a cracking sound as the villa began sinking. A large crack was visible at the building’s base…most sinkholes are small. Hotel Resort Sinkhole DamageSinkholes can develop quickly or slowly over time…they are caused by Florida’s geology — the state sits on limestone, a porous rock that easily dissolves in water, with a layer of clay on top. The clay is thicker in some locations making them even more prone to sinkholes…Other states sit atop limestone in a similar way, but Florida has additional factors like extreme weather, development, aquifer pumping and construction…”

A sinkhole caused a section of a central Florida resort villa to partially collapse early Monday, while another section of the villa was sinking, authorities said. About 30 percent of the three-story structure collapsed around 3 a.m. Monday, Lake County Fire Rescue Battalion Chief Tony Cuellar said. The villa at the Summer Bay Resort had already been evacuated and no injuries were reported. Cuellar said authorities were also concerned about another section of the villa, which was sinking.

The sinkhole comes five months after one elsewhere in Florida killed a man. Monday’s sinkhole, which is in the middle of the villa, is about 40 to 50 feet in diameter, Cuellar said. He said authorities think it was getting deeper but couldn’t tell early Monday if it was growing outward.

The villa houses 24 units and about 20 people were staying in it at the time, Cuellar said. Authorities were called to the scene, about 10 miles west of Disney World, late Sunday where they found that the building was making popping sounds and windows were breaking.

For more:  http://www.dailynews.com/news/ci_23843301/huge-florida-sinkhole-causes-resort-villa-partially-collapse

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Filed under Guest Issues, Liability, Management And Ownership, Structural Damage

Hospitality Industry Alcohol Risks: Mississippi Casino Resort And Spa Sued For $75 Million By Family Of Man Who Died After Consuming "Free Drinks"

The suit claims casino workers kept serving free drinks to 30-year-old Bryan Lee Glenn in August 2009, ignoring pleas from the drunken man’s family to stop serving him. 

A lawsuit claims a Mississippi casino served so much alcohol to a man taking powerful prescription painkillers that he died on the floor of his hotel bathroom. The lawsuit against IP Casino Resort and Spa in Biloxi was filed Wednesday in U.S. District Court in Gulfport. It seeks damages of $75 million.

The suit says Glenn died in his hotel room. He’d taken prescribed painkillers including Percocet, morphine and Xanax, as well as antipsychotic medications in the three weeks before his death, the lawsuit says. He was being treated for physical injuries as well as psychosis and hallucinations. Glenn had suffered a traumatic brain injury in a 2004 four-wheeler accident, then suffered back injuries in a 2007 car wreck.

Read more here: http://www.miamiherald.com/2012/07/27/2915715/75m-lawsuit-claims-casino-let.html#storylink=cpy

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Filed under Claims, Guest Issues, Health, Insurance, Liability, Management And Ownership, Training

Hotel Flood Insurance: Gaylord Opryland Resort (Nashville, TN) Purchased Maximum $50 Million Flood Insurance And Is Unsure If Coverage Will Be Sufficient

The $1 billion-plus hotel on the banks of the Cumberland River had $50 million in flood insurance. Asked whether that amount would be enough to cover the damages, Reed said: “Maybe, but we just don’t know.”

That amount was the maximum level of flood insurance Gaylord could buy from any insurer “because we sit next to the Cumberland River,” Reed said. The company had tried to buy more, but couldn’t find any insurer willing to go above $50 million of coverage.

(From a Tennessean.com article)   It could be up to six months before the flooded Gaylord Opryland Resort and Convention Center reopens, and the full extent of damage is still being assessed, Gaylord CEO and Chairman Colin Reed told The Tennessean today.

“We have water in the tunnels; we have no understanding of the damage to the power plant. It could take three months, four months, five months or six months. The fact of the matter is that until we get the water out, we just don’t know,” Reed said.

He also said the hotel’s staff will remain on the payroll for at least the next six weeks and will play a role in helping the vast facility rebound. It’s unclear what happens with people’s pay after that initial period.

A flagship of Nashville’s tourism industry, the Opryland Resort & Convention Center was evacuated Sunday night as floodwaters spilled over the Cumberland River, filling parts of the hotel with 10 feet of water. Electronics systems and other high-tech equipment are at risk.

It will take a week to get floodwater pumped out, Reed said, and by then the company may have a better understanding of the full extent of damages. “Until we’re able to get to the technology, we just don’t know.”

http://www.tennessean.com/article/20100506/BUSINESS01/100506076/-1/nsitemapXML/Opryland-hotel-may-be-closed-for-six-months

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Filed under Insurance, Liability