Hotel owners face backlash over rates in wake of Valley Fire

Hotel owners are on the defensive against accusations that they charged high-season rates to people fleeing the Valley fire on Saturday, when the first evacuations began.

“We made a mistake,” said Kevin Parmar, manager of the Lake Point Lodge in Clearlake Oaks. He said a front desk clerk made the error, not recognizing the situation for what it was.

“There were a lot of reservations coming over the phone and he decided to raise the rates because there was a lot of demand and less rooms available,” said Parmar. He said about eight guests were charged $249 for rooms that in low season start at $149.

Like other hotels and motels, the Lake Point Lodge uses a computerized system that manages check-ins and reservations and, when it registers a high and increasing demand, recommends higher rates. Other innkeepers said that was the culprit.

“The system is designed to sense demand and it raises rates when there is demand. But the system doesn’t know there is a disaster,” said Paresh Pakhare, manager of Ukiah’s Discovery Inn, which also has come in for criticism.

He said those customers overcharged were given refunds. At Lake Point Lodge, Parmar said overcharged customers were reimbursed and given free lodging once he learned what had happened.

Parmar posted an apology and explanation on the hotel’s Facebook page. But withering criticism had already started. One post attacking the lodge attracted 509 comments within a day, many urging a boycott. The Discovery Inn came under similar fire.

“Social media exploded because a few people got furious,” said Pakhare, “and I understand, we are part of the community.”

At the Anchorage Inn in Lakeport, assistant manager Hetal Patel said the complaints about her business are unfounded.

“We haven’t charged anyone $250 a night or anything like that,” she said. “It just depends on what room they rent.”

Joey Luiz, a district liaison officer with the state Board of Equalization, investigated the three hotels, he said, after hearing of the complaints. A former Clear Lake mayor, he reported the Anchorage Inn to Lakeport officials, but not the Discovery Inn or the Lake Point Lodge.

Lake County Sheriff Brian Martin also said he was looking into reports of price gouging at area hotels. If warranted, complaints will be forwarded to the district attorney because it is a crime, he said.

“We will address people profiteering during this time of disaster,” Martin said.

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You can reach Staff Writer Jeremy Hay at 521-5212 or jeremy.hay@pressdemocrat.com. On Twitter @jeremyhay