Lawsuit: $1 Million Stolen from Starwood in Scam by Le Parker Méridien Hotels?

Creative accounting practices allegedly implemented by the owner of the Le Parker Méridien New York hotel property has supposedly led to a lawsuit filed at a federal court in Manhattan by Starwood Hotels and Resorts seeking a court order to cancel licensing agreements to operate the hotel properties under the Le Méridien brand as well as wanting unspecified damages.

Starwood Hotels and Resorts claims that greater than one million dollars was reimbursed to the hotel as a result of fraudulent practices, which includes falsified records.

FlyerTalk members are concerned about their reservations at the Le Parker Méridien New York and The Parker Palm Springs hotel properties, both at which employees allege that records were falsified and room reservations for fictitious guests were fabricated for greater than three years.

Last month, the Le Parker Méridien New York announced that it would implement a mandatory daily facilities charge of ten dollars per day effective as of January 1, 2013. Was this fee a way of bilking its guests, or was it truly justified? It would stand to reason that if it is proven that the Le Parker Méridien New York indeed did claim fraudulent reimbursements from Starwood Hotels and Resorts, it would also resort to cheating its guests as well.

According to FlyerTalk member BigBopper, the Le Parker Méridien New York hotel property may have already cheated its guests — albeit indirectly — in one manner: “If the hotel told SPG they had sold rooms when they didn’t then this would affect their APR, which would in turn affect their SPG category. So essentially anyone who used points at either property was defrauded.”

The Parker Palm Springs and Le Parker Méridien New York hotel properties both became a part of the Starwood Preferred Guest frequent guest loyalty program on Friday, November 7, 2008 amid much fanfare. At that time, FlyerTalk members were excited about the new additions.

Today, reviews and opinions by FlyerTalk members are mixed at best at the Le Parker Méridien New York hotel property, including a scathing review in 2009 which included reports of mold in a corner suite. Reviews and opinions by FlyerTalk members are also mixed at best at The Parker Palm Springs.

Grab your popcorn, kids. This story promises to get even more interesting…

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