A luxury Pasadena hotel that has welcomed guests for more than a century will pay hundreds of thousands of dollars after Los Angeles County accused it of illegally hiking room rates as families fled the devastating Eaton and Palisades wildfires.
Langham Hotels Pacific Corporation, which operates the historic Langham Huntington Pasadena, agreed to pay $320,000 and provide at least $216,795 in refunds to hotel guests to settle a consumer protection lawsuit alleging it violated California’s anti-price gouging law during the January 2025 wildfire emergency.
However, the company did not admit liability as part of the settlement.
“It is reprehensible to overcharge and take advantage of wildfire victims who were in desperate need of housing as they fled their homes from raging fires last year,” Los Angeles County District Attorney Nathan Hochman said Monday.
“During a time when our community was meant to come together to help those in need, Langham Hotels Pacific Corporation profited from other people’s tragedies.”
Hochman said his office has worked alongside law enforcement and consumer protection agencies since the fires to crack down on price gouging, looting, unlicensed contracting and other crimes targeting disaster victims.
The settlement resolves a lawsuit filed jointly by the Los Angeles County District Attorney’s Office and County Counsel’s Office alleging the hotel charged guests more than 10% above its regular room rates after Gov. Gavin Newsom declared a state of emergency on Jan. 7, 2025, when the Palisades and Eaton fires erupted across Los Angeles County.
California law prohibits hotels from increasing advertised room rates by more than 10% during a declared emergency unless a statutory exception applies.
County Counsel Dawyn R. Harrison said the agreement ensures consumers will be made whole.
“My office values our partnership with the District Attorney’s Office on consumer protection enforcement, and we are committed to preventing price gouging in the County,” Harrison said.
“This settlement provides full refunds of the illegal overcharges to consumers who were price gouged during a horrifying wildfire emergency and sends a message to other businesses to comply with the law.”
The Langham Huntington Pasadena advertises itself as “Los Angeles’ original getaway” and an “iconic landmark hotel” that has been a renowned Pasadena destination for more than 100 years, according to the complaint. The sprawling luxury property features 379 guestrooms, including dozens of suites and eight cottages, and accepts bookings through its own website as well as third-party travel platforms such as Expedia and Travelocity.
As of now, a deluxe room that accommodates two to three adult guests can be booked for nearly $500 per night, according to the hotel’s website.
Prosecutors alleged that despite emergency price restrictions taking effect immediately after Newsom’s proclamation, the hotel charged guests rates exceeding what was legally permitted.
The complaint alleges the violations began no later than Jan. 7, 2025, and continued through at least July 1, 2025, constituting unlawful business practices under California’s Unfair Competition Law.
The lawsuit came against the backdrop of one of Southern California’s most destructive wildfire disasters. Court filings note that tens of thousands of residents were forced to evacuate after the Palisades and Eaton fires broke out on Jan. 7, 2025.
By late January, the Palisades Fire had burned more than 23,000 acres, while the Eaton Fire had scorched more than 14,000 acres and destroyed thousands of homes and other structures. The wildfires killed at least 31 people.
Under the stipulated judgment, Langham must pay $300,000 in civil penalties and $20,000 to cover investigation costs. In addition, the company must refund every eligible guest who paid more than the maximum legal room rate during the emergency period.
The parties calculated that guests are owed at least $216,794.86 for overcharges between Jan. 7 and April 6, 2025, alone, with the hotel already beginning to issue refunds. Guests who were overcharged after April 6, 2025, through the remainder of the emergency period must also be reimbursed.
Any refund money that cannot be delivered after reasonable efforts will be transferred to the Los Angeles County Department of Consumer and Business Affairs, which will continue trying to locate eligible guests before any remaining funds are ultimately directed to consumer protection programs.
The settlement also requires Langham to overhaul its pricing practices.
Court records state the company must immediately impose legally required price caps whenever a federal, state or local emergency is declared, modify any automated or algorithmic pricing systems to prevent unlawful increases, appoint personnel responsible for monitoring emergency declarations, train staff on California’s price gouging laws and hire an independent third-party auditor to verify refunds and compliance.
The company must also submit a compliance report to county officials one year after the judgment takes effect.
Langham cooperated with the investigation and entered into the settlement to avoid the expense and uncertainty of litigation, according to the DA’s office.
The California Post has reached out to Langham for comment.
Read the full article here