New Mexico authorities investigating hotels for price gouging during deadly wildfires

Cease-and-desist notices were sent to several New Mexico hotels after the New Mexico Department of Justice received nearly a dozen reports of price gouging as residents fled from the South Fork and Salt wildfires near Ruidoso, authorities said.

The New Mexico Department of Justice sent cease-and-desist notices to several hotels in Roswell, New Mexico, justice officials said.

The Roswell hotels, according to authorities, are:

• The Baymont by Wyndham
• The Clarion Inn
• Days Inn
• Holiday Inn
• Home2 Suites by Hilton

The La Quinta in Artesia, New Mexico also received a cease-and-desist notice, officials said.

"As New Mexico deals with its current wildfire season, we believe that businesses should maintain pricing integrity and adhere to laws that prevent charging excessive rates during times of emergency," IHG Hotels & Resorts, who brands include the Holiday Inn, said in a statement. "We are unaware of any involvement by the State of New Mexico’s Department of Justice and would need to refer to the independently owned and operated Holiday Inn Roswell hotel for any comment. As always, our team will help to deliver the highest level of hospitality for emergency workers and those seeking relief and comfort at our hotels, especially during times of emergency."

Owners of the Holiday Inn in Roswell could not immediately be reached for comment.

The Clarion Inn is an "independently owned and operated franchised hotel," a Choice Hotels spokesperson said in an email. The spokesperson directed all questions to The Clarion Inn operators. The Clarion Inn operators could not immediately be reached for comment.

The operating companies of the other hotels — Wyndham Hotel and Resorts and Hilton Inc. — could not be immediately reached for comment.

A preliminary investigation allegedly showed that several hotels have "potentially engaged in unfair price-gouging, causing harm to those affected by recent wildfires," New Mexico Department of Justice officials said.

Several complaints alleged "hotel bookings are being canceled with little to no explanation," officials said. The hotels allegedly would then rebook the customer at a higher price. Other anonymous complaints received by the New Mexico Department of Justice include allegations of "blatant upcharging of hotel rooms due to the Ruidoso fires," officials said.

The notices request "immediate cessation from engaging in business practices that violate the New Mexico Unfair Practices Act that prohibits unconscionable business practices, such as exploiting consumers during an emergency," officials said.

Community members are urged to continue submitting any complaints of potential price gouging or other possible fraudulent behavior to the New Mexico Department of Justice.

Complaints may be submitted online at nmdoj.gov/get-help by completing an online complaint form or by calling the New Mexico Department of Justice at 505-490-4060 and selecting option 3.

The South Fork wildfire has destroyed 17,569 acres and the Salt wildfire has destroyed 7,939 acres as of Wednesday, July 3, Southwest Area Incident Management Team officials said. The wildfires have resulted in the deaths of two people.

Aaron Martinez may be reached at amartinez1@elpasotimes.com or on Twitter @AMartinezEPT.