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Asbury Park's Berkeley Hotel accused of Sandy price gouging (Asbury Park Press, N.J.)

By David P. Willis, Asbury Park Press, N.J.McClatchy-Tribune Regional News

May 10--In the days after superstorm Sandy swamped Asbury Park's boardwalk, the state says the city's landmark Berkeley Oceanfront Hotel gouged customers when it raised prices for rooms.

The state Division of Consumer Affairs has filed a lawsuit against the Ocean Avenue hotel, accusing it of price gouging and raising its room rates by as much as 117 percent.

Those prices -- between Oct. 27, the day of Gov. Chris Christie's declaration of a state of emergency because of Sandy, and Nov. 11 -- were above the charges for the same rooms prior to the state of emergency, the Attorney General's office said.

The hotel, still known to many at the Jersey Shore by its historical name of Berkeley-Carteret, is alleged to have engaged in 280 instances of price gouging during the state of emergency, the state said in a statement.

Neither a representative of the Berkeley nor its corporate parent, Amsterdam Hospitality Group, could be reached for comment. The Berkeley became part of Amsterdam's chain of boutique hotels, most of which are in New York, after a $16 million purchase by mega-developer the Cherit Group in 2007.

"Anyone paying attention in New Jersey knows we will not tolerate illegal attempts to take financial advantage of anyone affected by superstorm Sandy," state Attorney General Jeffrey S. Chiesa said in a statement.

New Jersey law prohibits excessive price increases, a spike of more than 10 percent, during a declared state of emergency or for 30 days after it ends.

In court papers, the state says the Berkeley raised prices from 12 percent to 117 percent, citing hikes across various classes of rooms on different dates.

For instance, on Nov. 10, a deluxe room with a king-size bed and an ocean view was priced at $225, a 16 percent increase, according to court papers. Two rooms, each with two queen-size beds, was priced at $215, a 117 percent increase, on the same day, the lawsuit states.

Besides the Berkeley, the state filed lawsuits alleging price gouging against the Studio Inn & Suites on East White Horse Pike in Galloway and a gas station, C&M Exxon, on Ridgedale Avenue in East Hanover.

In Sandy's immediate aftermath, the state received more than 2,000 consumer complaints.

"The victims of price gouging are families who were displaced from their homes, desperate for shelter, heat, and fuel as a result of the most severe natural disaster in New Jersey's history," Eric T. Kanefsky, acting director of the state Division of Consumer Affairs, said in a statement. "We owe it to these New Jersey residents to see every allegation of price gouging to its proper end."

It's the fourth set of lawsuits filed since early November. In total, 27 New Jersey businesses -- 15 hotels and motels, including the Holiday Inn in Hazlet, and 12 gasoline stations -- have been sued by the state.

Two of the lawsuits have been settled, with two gas stations agreeing to collectively pay $46,000.

David P. Willis: 732-643-4039; [email protected]; facebook.com/dpwillis732

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(c)2013 the Asbury Park Press (Neptune, N.J.)

Visit the Asbury Park Press (Neptune, N.J.) at www.app.com

Distributed by MCT Information Services London:BKG,



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