Disclaimers: I'm not a lawyer (thank god), and I have only a hotelier's experience with the Innkeepers Statute in Oregon. That said, I think I have some ideas.

The relevant section of the ORS is 699 - it deals with hotel liability, and an excerpt from this (usually 699.010) is generally conspicuously posted in every room of the property. It contains the various fine print disclaimers of liability, including a notice that a safe is available for valuables. Baggage is covered separately in 699.020. These statutes receive astonishingly little legislative attention.

The limit is, as stated, $150/bag. That said, that limit hasn't been raised in at least 30 years, so far as I can tell. Furthermore, there is a specific phrase taken from 699.010 that may be of use:

"Every innkeeper or hotelkeeper is liable for the loss of any property of a guest in the inn or hotel, whether or not the property has been accepted for safekeeping as provided in this section, if the loss is due to the theft or negligence of the innkeeper, hotelkeeper or any of the servants of the innkeeper or hotelkeeper.

Thus, there may be some wiggle room in the ridiculously low limits at play here.

I think the suggestion to file with homeowner's insurance is ill-advised; insurers are looking for excuses to cancel, or, more politely "non-renew" policies, and a claim of this nature would be a perfectly fine reason to do so. This blows.

Here's what I would do:

1) I'd write a strongly-worded letter to the hotel describing the circumstances of the loss as you see them, with an itemized list of the contents of each suitcase and an estimate of replacement value attached as an appendix. Address it to the general manager, and send a copy to the actual owner of the property (Realvest Corp. of Vancouver, WA) and one to an appropriate VP at Hilton with responsibility for the Embassy Suites brand. Explain that you wish to be fully compensated for the loss as it was solely negligent behavior on the part of the property and its employees that caused the loss. Walk through the sequence of events that preceeded the loss, and explain that none of the steps the guest took were unreasonable - it's expected that if you hand over your bags to a hotel employee that they will reach your room, and that the hotel will take reasonable precautions to prevent a loss, thus it is relatively safe to trust them with the bags. Explain that this is not the same situation as having bags freighted ahead of time via the rails, as was often the case when the statutes were drafted, and one assumed a certain risk of loss. Set a two-week deadline for a response. This is both timely, and reasonable.

2) If they respond, mazel tov. Move on. (Although, a couple of complimentary nights on top of the monetary recovery would be nice). If not, I would resubmit the complaint to the same addresses, and with very little looking, one can determine the home address and telephone number of the President of Realvest. I'd also copy the travel editor at the Portland Oregonian, the Attorney General's office and the Portland Oregon Visitors Association, along with one of the national publication travel ombudsmen. Set another two-week deadline, and include your intention of filing a small claim court case for the value. The threat of a little adverse publicity from a rational, informed person can go a long, long way in shaping management opinon of the strength of their position.

3) If they don't respond, file, and don't forget to include any allowed expenses that have been incurred as a result of this claim.

I'm sorry this happened; I'm a native Oregonian, a former Portland resident, a frequent Portland hotel guest and a former OR hotelier.

Regards,

Eric