Franchisees have filed class-action lawsuits against two major hotel brands, saying the companies are illegally taking loyalty fees for guests who, in some cases, don't even know they've been enrolled in frequent-stay programs.
The suits, filed in U.S. District Court in Orlando last month, allege that Wyndham Worldwide Inc. and Choice Hotels International Inc. have inflated the ranks of their loyalty programs and are collecting fees from hotels when those guests stay at franchise properties.
Lawyers for the hoteliers have asked for more than $260 million in damages from Wyndham, and more than $225 million from Choice — figures they termed "very conservative."
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