What are some state requirements regarding 'overbooking' at a Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Lodging facilities are subject to state innkeepers' laws that may (i) allow innkeepers 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 checkin and retention of records for a specified period of time; (v) limit the right of innkeepers to refuse lodging to certain guests; and (vi) limit the right of innkeepers to evict guests in 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. Some states and municipalities have also enacted laws and regulations governing non-smoking areas and guest rooms.
Source: Item 1 — THE LICENSOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–15)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, some states have regulations concerning 'overbooking' practices in hotels. Specifically, certain states prohibit overbooking and mandate that innkeepers, such as Crowne Plaza franchisees, must find alternative accommodations for guests if they have already paid a deposit. This means that if a Crowne Plaza hotel in these states overbooks and cannot honor a reservation for a guest who has paid a deposit, the hotel is legally obligated to locate and provide another suitable place for the guest to stay.
This requirement has significant implications for Crowne Plaza franchisees. It means franchisees need to carefully manage their reservations and occupancy rates to minimize the risk of overbooking. Failure to comply with these state laws can result in legal penalties and damage to the hotel's reputation. Franchisees may need to implement strategies such as closely monitoring booking patterns, using sophisticated reservation management systems, and training staff to handle overbooking situations effectively.
For a prospective Crowne Plaza franchisee, it is crucial to understand the specific overbooking laws in the state where they plan to operate their hotel. This includes knowing the exact requirements for finding alternative accommodations, the potential costs involved, and any penalties for non-compliance. Consulting with legal counsel and local hotel associations can provide valuable insights into these state-specific regulations. This information will help the franchisee develop appropriate policies and procedures to manage overbooking risks and ensure compliance with the law.