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Miami Men File Suits Against Hotels for Adding Energy Surcharges to Bills

By Michele Chandler, The Miami Herald
Knight Ridder/Tribune Business News 

Jun. 29--Several top hotel chains have quietly added energy surcharges to consumers' hotel bills, an action that has spurred at least two lawsuits and an investigation by Florida's attorney general. 

The surcharges, usually about $3 or less per night, are necessary to balance increasing electricity costs, the hotel companies say. But customers often aren't told about the add-ons until checkout, a violation of state law, according to consumer watchdogs. 

Two Miami men who say they were hit with improper energy surcharges during recent hotel stays have filed a class-action lawsuit against the Wyndham International chain. 

According to a lawsuit filed earlier this week in Dade County Circuit Court, James Soper spent one night at the Wyndham Harbour Island-Tampa, while Arnold Levy spent one night at the Wyndham Grand Bay-Coconut Grove. Neither was informed about the surcharge when reservations were made or when they checked in, the lawsuit said, but became aware of the charge after reading their final bills. 

The Tampa hotel added a $2.75 energy surcharge, according to the complaint, while the Miami hotel charged $2.81. 

"The problem is no one will know about the surcharge unless they ask," said Miami lawyer Jon Herskowitz, who represents Soper and Levy. "The consumer should have the ability to choose where to stay after being told the total room rate." 

The charge constitutes a deceptive and unfair trade practice, according to the suit, which requests class action status for other Wyndham hotel guests who paid energy surcharges they were not notified about in advance. 

Wyndham spokeswoman Darcie Brossart said the company does not discuss pending litigation. But, she said, nightly energy surcharges are added only at hotels where energy costs have risen dramatically, varying from $3.50 in California to $2.50 in Florida and five other states. 

Customers are told about the charge when they make reservations, again at check-in and also through literature in the hotel room, said Brossart. "If the customer inquires about it and doesn't want to pay it, we take it off the bill," she said. 

The practice has drawn scrutiny from the Florida Attorney General, which recently issued subpoenas to 10 Florida hotels that the agency said tacked energy surcharges to customer's room rates without prior notification. 

Half of those hotels receiving subpoenas were in South Florida -- Fort Lauderdale Airport Hilton, JW Marriott Hotel in Miami, Radisson Suites in Palm Beach, Embassy Suites Hotel in Palm Beach Gardens and the Comfort Inn in Palm Beach Lakes. 

Subpoenas also were issued to five hotel chains: Hilton Hotels Corp., Marriott International, Wyndham International, Starwood Hotels & Resorts Worldwide and Lodgian, Inc. 

Investigators found a range of energy surcharge prices, from $1.44 per night at the Jacksonville Hilton to $3 per night at the JW Marriott in Miami, said Assistant Florida Attorney General Mark Kraus. Embassy Suites in Palm Beach Gardens adds a $2.50 per night energy fee. 

"Every time you make a representation about your room rate, you need to disclose charges that aren't government-mandated taxes," Kraus said. 

Last month, a California law firm filed suit against four national hotel chains, alleging they added "energy surcharges" to room rates that customers didn't see until check-out. Those rates ranged from $2.50 to $7.75, per room, per night. The energy surcharges began appearing at California hotels in February, after energy prices there spiked, said Barry Himmelstein, an attorney with the San Francisco law firm that is bringing the suit. 

Hotel chains named in the suit filed in Los Angeles include Hilton Hotels Corp., Hyatt Corp., Marriott International and Starwood Hotels & Resorts Worldwide. 

The hotel chains say their energy surcharges are totally justified in regions where costs have gone up. 

Starwood, which owns the Sheraton chain, has added the surcharges at its properties primarily in the West and Midwest. 

Before adding energy surcharges, Starwood's hotels had to show that the electricity costs for their establishments had risen significantly. And, said Nadeen Ayala, spokeswoman for New York-based Starwood, "As soon as we see costs coming down, these temporary charges will be lifted." 

-----To see more of The Miami Herald, or to subscribe to the newspaper, go to http://www.herald.com

(c) 2001, The Miami Herald. Distributed by Knight Ridder/Tribune Business News. HLT, MAR, HOT, LOD, 


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