Hotel Business Magazine, hotelbusiness.com | The Newspaper For Lodging Decision Makers

Hotels Accused of Price Gouging During Hurricane

Friday November 30th, 2012 - 12:32AM

NEWARK, NJ–The Attorney General of the State of the State of New Jersey has brought charges against the owners of eight hotels, accusing them of illegally overcharging customers during the recent Hurricane Sandy.

The Attorney General claims the mid-price hotels charged in excess of $400 a night, jacking up rates by as much as 200%. The hotels are accused of over 500 instances of price-gouging. The brands involved include Ramada, Holiday Inn Express and Howard Johnson Express. New Jersey law stipulates that it is illegal to raise rates by more than 10% during a natural disaster.