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Hilton shares fall after allegations of refusing service to ICE agents

Hilton shares fall after allegations of refusing service to ICE agents

Hilton Faces Scrutiny Over Cancellation of ICE Reservations

Hilton’s stock dropped about 2% on Monday following accusations from the Trump administration that the hotel chain unexpectedly canceled reservations made by ICE agents, linked to their immigration enforcement duties.

The stock saw a slight recovery, climbing 0.6% at the beginning of trading on Tuesday, trading around $288 per share by 10 a.m. ET.

The Department of Homeland Security (DHS) claimed Hilton denied service to ICE agents investigating alleged fraud within the Somali immigrant community in Minnesota.

“There are no rooms at the inn!” was the bold assertion made in a DHS post on their official X account.

The accusation included claims that Hilton launched a “coordinated campaign” to refuse services to DHS law enforcement agents in Minneapolis.

DHS expressed that when an employee tried to book a room using official government emails and rates, Hilton “maliciously canceled the reservation.”

Expressing disbelief, a DHS spokesperson questioned why Hilton would “side with murderers and rapists” and obstruct their enforcement efforts regarding immigration laws.

DHS provided a screenshot of an email from January 2, revealing that a Hilton representative notified the recipient of the cancellation due to “immigration information” associated with their name.

The screenshot indicated the recipient should expect a formal cancellation email from Hilton shortly.

Another screenshot depicted a message believed to be from Hilton, stating, “This email relates to a reservation you made at a Hampton Inn Lakeville property.” It noted that due to the “high volume of GOV reservations for DHS,” ICE officials were not permitted to stay at their facilities, and such reservations would be canceled.

A Hilton representative mentioned to CNBC that the impacted hotels are independently operated and that their actions do not represent Hilton’s values.

A spokesperson affirmed, “We have communicated directly with the hotel and have apologized for the violation of team policy,” adding that steps are being taken to address the situation and assist affected guests. Hilton’s stance is that all properties are open to everyone, with zero tolerance for discrimination.

It’s important to note that Hampton Inn Lakeville Minneapolis operates as an independently owned franchise under the Hampton by Hilton brand.

While Hilton contributes to the hotel brand and provides the reservation system, daily operations are managed by Everpeak Hospitality and its ownership group.

An Everpeak representative stated the issue was addressed promptly as it contradicts their policy of inclusion. They also assured that they are reaching out to affected guests to guarantee accommodations and emphasized their commitment to treating everyone equally.

In a previous statement during the first Trump administration in September 2020, Hilton publicly opposed using their hotels for detaining immigrants, including minors. This followed reports that a Hampton Inn & Suites in McAllen, Texas, was accommodating bookings from contractors associated with ICE.

In July 2020, Hilton reiterated their position, emphasizing that hotels should not serve as detention centers and that all properties should refuse any business involving such practices.

The newspaper has reached out to Everpeak Hospitality and Hilton for further comments.

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