NACOGDOCHES, TX (KTRE) - We have a followup to an investigation of a price gouging complaint that began the days following Hurricane Ike. Today Hotel Nacogdoches is being sued by the Texas attorney general. Greg Abbott claims Hotel Nacogdoches boosted its normal room rate from $49.99, the advertised rate on the marquee, to $109. Previously, the hotel's owner said he didn't have access to the computer program because he had just bought the hotel. The A-G's office isn't convinced.
HOUSTON - Texas Attorney General Greg Abbott today took legal action against the Hotel Nacogdoches and the Super 8 Brookshire Motel near Katy for unlawfully increasing room rates during Hurricane Ike. According to the state's enforcement actions, the defendants charged exorbitant rates in an attempt to illegally profit from a declared disaster.
On Sept. 8, Gov. Rick Perry issued a disaster declaration as Hurricane Ike approached Texas. State and federal officials urged Gulf Coast residents to evacuate as soon as possible. An estimated 1.2 million people heeded these warnings and sought lodging in hotels and motels until the storm passed. Under the Texas Deceptive Trade Practices Act, businesses are prohibited from taking advantage of a declared disaster by selling or leasing fuel, food, lodging, medicine or other necessities at an exorbitant rate.