Case Details

Year Initiated/Committed

2010

Year Resolved

2010

Settlement Amount

n/a

Court

n/a

Docket Number

n/a

Lead State

CT

Participating States

CT

Defendant(s)

LQ Management, LLC; La Quinta Franchising, LLC

Case Description

State investigated “call-arounds” by hotels, in which when one hotel employee contacts competing hotels and exchanges with them information concerning their respective current room rates and occupancy rates. Such call-arounds or information exchanges generally happen multiple times daily by phone or internet. this information is not otherwise public. The state alleged that competitors of La Quinta have used call-around information to raise their prices on a regular basis, violating the Connecticut Antitrust Act. Defendants agreed to end the practice in their hotel chain, which operates five hotels in Connecticut. La Quinta’s agreement to end call-arounds covers all La Quinta hotels nationally. The prohibition does not prevent hotels from reviewing commercially available reports and information, communicating with any other hotel or motel on behalf of a specific guest seeking to relocate, or communicating with any other hotel/motel to accommodate guests in the event of a state of emergency, disaster or similar situation.