Skip to content
Search

Latest Stories

Former AAHOA chairman suing insurance company for COVID-19 losses

The lawsuit claims the company is not acting on a business interruption insurance claim

Former AAHOA chairman suing insurance company for COVID-19 losses

A FORMER AAHOA chairman and California hotelier has filed suit against his insurance company, for denying coverage on his business interruption insurance policy in connection with losses incurred from the COVID-19 pandemic. It’s a situation in which many other hotel owners with similar policies find themselves, Tarun Patel and his attorneys said.

Patel is head of Pacific Lodging Group, plaintiff in the lawsuit against Sequoia Insurance Co. The lawsuit, filed in Superior Court of the State of California in Santa Clara, California, claims Sequoia has not issued a coverage determination even though Patel filed his claim several months ago. The insurance company also has not issued a denial letter or request for information or taken any other action on the claim related to losses at Patel’s Bodega Coast Inn & Suites in Bodega Bay, California.


“We consistently paid a costly premium for comprehensive insurance from Sequoia for years,” Patel said. “Now we need Sequoia to step up and fulfill their obligation so that we can recover. Insurance companies must honor their contracts and do their part to help the country recover from this disaster, just like everyone else. I am hopeful that the courts will agree.”

Patel, who served as AAHOA chairman from 2009 to 2010 and who currently serves on the board of the American Hotel and Lodging Association, said the pandemic related travel and activity prohibitions have been particularly hard on hotels, particularly small, family-owned hotels.

“Across the country, many businesses that thought they were being responsible by securing and paying premiums for business interruption coverage are now facing mounting costs resulting from their insurance company’s failure to cover losses arising from COVID-19,” said as statement from the law firms representing Patel and Pacific Lodging Group, Cohen Milstein Sellers & Toll and Gibbs Law Group.

The firms are reviewing potential claims from hotels, restaurants and small business owners across the country that have been affected by insurance companies’ refusal to pay.

“Once again, we see another insurer ignoring their financial responsibility and refusing to pay their contractually agreed-upon coverage,” said Geoffrey Graber, partner at Cohen Milstein Sellers & Toll and a member of the firm’s COVID-19 Business Interruption Insurance Coverage Task Force. “Bodega Coast Inn & Suites is the type of small business that we need to protect during this challenging time. Sequoia’s failure to honor its obligations have put the livelihoods of so many people at risk for their own benefit.”

Sequoia is not the only insurance company denying claims related to the pandemic, said Eric Gibbs, a partner at Gibbs Law Group and also a member of the task force.

“Sequoia is falling in line behind other insurance providers in allowing their policyholders to be financially decimated, while continuing to grow their profit margins,” Gibbs said. “We seek to prevent the demise of the hotel industry and other small businesses who paid Sequoia’s premiums yet are being denied coverage.”

Current business interruption insurance policies may not cover a pandemic, Rahul Patel, managing partner at the Patel|Gaines law firm in San Antonio, Texas, said previously.

“I think that there are probably some strong legal provisions that state that your insurance should or does cover this type of situation. But the flip side to that is, whether it says that or not, or whether it’s covered or not, isn’t really the situation. The situation is how long is it going to take for you to find relief under that?” he said. “Do you believe that insurance companies are going to bend over and say ‘Hey, $20,000, let’s just pay the claim.’ No, because there’s going to be thousands of claims. I told someone that it might not be a bad angle to pursue, but if you’re relying on that to come in next month then you’ve got a problem.”

More for you

Mark Hoplamazian and Greg Friedman at Hunter Hotel Conference 2025

Hyatt's Hoplamazian, Peachtree's Friedman to speak at Hunter

What Will Mark Hoplamazian Share at Hunter 2025?

MARK HOPLAMAZIAN, PRESIDENT and CEO of Hyatt Hotels Corp., will join Greg Friedman, managing principal and CEO of Peachtree Group, for a fireside chat at the Hunter Hotel Investment Conference on March 19. Hunter introduced this format last year with Anthony Capuano, CEO of Marriott International, as the featured guest.

In “A Conversation with Mark Hoplamazian,” he will share insights on his hospitality career, leadership approach, Hyatt's market position, company outlook and industry developments, Hunter said in a statement.

Keep ReadingShow less
ઇલિનોઇસ માનવ તસ્કરી વિરોધી બિલ પસાર કર્યું

ઇલિનોઇસ માનવ તસ્કરી વિરોધી બિલ પસાર કર્યું

ઇલિનોઇસ સેનેટની સ્થાનિક સરકાર સમિતિએ SB 1422ને મંજૂરી આપી, કર્મચારીઓની તાલીમ ફરજિયાત કરીને માનવ તસ્કરી સામે લડવાના હોટલ ઉદ્યોગના પ્રયાસોને મજબૂત બનાવ્યા. કાયદો સ્થાનિક સરકાર અને કાયદાના અમલીકરણને અનુપાલન પર દેખરેખ રાખવા અને ઉલ્લંઘન માટે દંડ ફટકારવાને મંજૂરી આપે છે.

ઇલિનોઇસ હોટેલ એન્ડ લોજિંગ એસોસિએશન સહિતના ઉદ્યોગ સંગઠનોએ સેન. માઇક હેલ્પિન (ડી-રોક આઇલેન્ડ) દ્વારા રજૂ કરાયેલા બિલની પ્રશંસા કરી હતી, જે હવે સંપૂર્ણ સેનેટ દ્વારા મતની રાહ જોઈ રહ્યું છે.

Keep ReadingShow less
Kevin Carey speaking at AHLA Foundation’s 2025 Night of a Thousand Stars fundraiser event.
Photo credit: American Hotel & Lodging Association

Carey is AHLA Foundation president and CEO

Who Is Kevin Carey, New AHLA Foundation CEO in 2025?

KEVIN CAREY, CHIEF operating officer and senior vice president of the American Hotel & Lodging Association, is now president and CEO of AHLA Foundation. He will remain AHLA’s chief operating officer while succeeding Anna Blue, who announced her departure in February after two years.

The announcement follows the Foundation’s Night of a Thousand Stars fundraiser, which gathered more than 400 industry leaders and raised more than $1 million for its initiatives, AHLA said in a statement.

Keep ReadingShow less
Homewood Suites Chattanooga exterior, acquired by MD and Pulse Hospitality in 2025
Photo credit: Hunter Hotel Advisors

MD, Pulse buy Homewood Suites in Chattanooga, TN

What’s the Deal with Homewood Suites Chattanooga in 2025?

MD HOSPITALITY AND Pulse Hospitality jointly acquired the Homewood Suites by Hilton Chattanooga-Hamilton Place in Chattanooga, Tennessee. The 76-room hotel is near Hamilton Place Mall, Chattanooga Metropolitan Airport, and Volkswagen Chattanooga.

Chattanooga-based MD Hospitality is led by President and CEO Dhaval Patel. Pulse Hospitality is a procurement firm specializing in sourcing and supplying goods and services for the hospitality industry.

Keep ReadingShow less