What should a Caption By Hyatt franchisee do if a guest has paid a deposit but the hotel is overbooked?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Lodging facilities must comply with innkeepers' laws that, among other things, might (i) allow innkeepers under certain circumstances to impose liens against the possessions of guests who do not pay their bills; (ii) limit the liability of innkeepers regarding guests' valuables; (iii) require posting of house rules and room rates in each room or near the registration area; (iv) require registration of guests and proof of identity at check-in, and retention of records for a specified period of time; (v) limit the rights of innkeepers to refuse lodging to certain guests; and (vi) limit innkeepers' rights to evict guests under certain circumstances. Applicable federal and state civil rights laws prohibit discrimination in hotels on the basis of race, creed, color or national origin. Some states prohibit "overbooking" and require innkeepers to find other accommodations if the guest has paid a deposit.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–14)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, some states have laws addressing the issue of overbooking. Specifically, if a Caption By Hyatt hotel is overbooked in a state with such a law, the franchisee may be required to find other accommodations for guests who have already paid a deposit.
This requirement is part of a broader set of innkeepers' laws and regulations that Caption By Hyatt franchisees must follow. These laws cover various aspects of hotel operations, including imposing liens on guests' possessions for unpaid bills, limiting liability for guests' valuables, posting house rules and room rates, requiring guest registration and record retention, and setting limits on refusing or evicting guests.
Additionally, Caption By Hyatt franchisees must adhere to federal and state civil rights laws that prohibit discrimination. They must also comply with accessibility laws like the Americans with Disabilities Act (ADA), which mandates offering facilities without discriminating against individuals with disabilities, providing auxiliary aids and services, and removing barriers to mobility and communication. Franchisees should be aware of and prepared to comply with all applicable laws and regulations in their jurisdiction to avoid potential legal issues and ensure fair treatment of guests.