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Two Motels Accused Of Gouging Snowbound

By Jim Ludwick, Albuquerque Journal, N.M.McClatchy-Tribune Business News

Jan. 3--While a Union County family gained national acclaim for opening their home to snowbound travelers, a couple of Albuquerque hotels allegedly took the opposite approach to hospitality.

The City Attorney's Office is looking into allegations that an Econo Lodge and a Best Western more than doubled their prices to take advantage of stranded travelers.

Mayor Martin Chavez said Tuesday that the hotels "ought to be ashamed of themselves."

Chavez, who had asked the public to report price-gouging during Albuquerque's weather emergency, said the rate increases were alleged by people who stopped at hotels near Central and Tramway, just off Interstate 40.

The winter weather forced the closure of roads throughout the state and canceled numerous airline flights.

The Best Western American Motor Inn was accused of charging about $160 for rooms that had cost as little as $54, according to the complaints. Rates for other rooms at the hotel allegedly went to $191 from $79.

At the Econo Lodge, prices allegedly increased to $108 from $52, according to the complaints.

The national headquarters of each hotel chain, contacted by the Journal, disavowed involvement in price changes and said any such decisions had been made by local owners and operators.

"We take these allegations very seriously and will investigate it internally," said David Peikin, spokesman for Choice Hotels International, which franchises Econo Lodge hotels.

He said it's best to maintain normal rates during weather emergencies. "We believe in, and our customers expect, fair pricing at all times," Peikin said.

Best Western national spokeswoman Denise Seomin said the owner of the Best Western American, Harmin Sian, will send refunds to people who were charged more than the normal rates.

She said that she talked with Sian in response to Journal questions and that he told her there had been an "inadvertent mistake." She said it would be up to Sian to explain to the Journal how such a mistake could be made.

Sian, interviewed later in the day, said he was not at the hotel when the prices were increased.

"An employee wanted to do better for the property. ... When I found out, I said we cannot do that," Sian said.

"Best Western headquarters called me. I told them I would do whatever is necessary to correct the mistake."

Sian said letters would be mailed to people who were overcharged. They will get refunds of the excess amount, he said.

Sian said he's still examining the situation and isn't sure what was ultimately charged for rooms or how many people were involved.

The manager of the Econo Lodge did not return phone calls. City Attorney Bob White said he also had been unable to reach hotel management.

White said he's exploring whether the law was violated -- especially the state's Unfair Trade Practices Act. He also said his department is discussing the matter with the New Mexico Attorney General's Office.

Attorney General Gary King on Tuesday warned motels and other New Mexico businesses not to take advantage of stranded motorists and others affected by last week's snowstorm.

How to file a complaint

To complain about pricegouging during the state's weather emergency, call the city of Albuquerque at 311 or contact the state Attorney General's Office via a link at www.ago.state.nm.us.

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Copyright (c) 2007, Albuquerque Journal, N.M.

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