Hotel Energy Charge Lawsuit Settled

Four of the nation’s top hotel companies Wednesday tentatively settled a class-action lawsuit stemming from energy surcharges they imposed during last year’s power crisis, in an agreement that could cost them more than $60 million in future discounts.

Under the settlement presented Wednesday in Los Angeles Superior Court, each person who stayed at a hotel run by Marriott International Inc., Starwood Hotels & Resorts Worldwide Inc., Hilton Hotels Corp. or Hyatt Corp. and paid an energy surcharge would be entitled to a $10 discount on a future stay.

The terms of the tentative settlement must still be approved by the court.

Attorney Barry Himmelstein, who represented the plaintiffs, said guests who stayed at hotels operated by any of the four companies starting in February or March 2001 and running as long as 10 months later would be potentially eligible for the discounts.

Marriott’s brands include Marriott, Renaissance, Ritz-Carlton, Courtyard and Fairfield Inns; Starwood’s brands include Westin, Sheraton and W; and Hilton’s chains include Hilton, Embassy Suites, Doubletree and Hampton Inn.

At the hearing, Judge Carolyn Kuhl acknowledged that the number of people who collect coupons under the proposed settlement would likely be far smaller than the number eligible.