5-Star Hotel Settles Wildfire Price-Gouging Case Brought By LA County DA

PASADENA, CA — The owner of a landmark five-star hotel in Pasadena will pay $320,000 to settle allegations that it illegally raised room rates during the January 2025 wildfires, according to prosecutors.

Langham Hotels Pacific Corporation must also provide at least $216,795 in refunds to eligible guests who were charged more than the maximum rate allowed under California’s anti-price-gouging law for stays at The Langham Huntington, Pasadena, according to the Los Angeles County District Attorney’s Office.

The lawsuit, brought by the DA’s Office and the County Counsel’s Office, alleged that Langham charged some guests more than 10% above the hotel’s regular rates after a state of emergency was declared.

The emergency declaration took effect Jan. 7, 2025, as wildfires broke out across Los Angeles County and forced thousands of residents from their homes.

“It is reprehensible to overcharge and take advantage of wildfire victims who were in desperate need of housing as they fled their homes,” District Attorney Nathan Hochman said in a statement.

Under the settlement, Langham will pay $300,000 in civil penalties and $20,000 in investigative costs.

The company must also refund eligible guests who stayed at the Pasadena hotel from Jan. 7, 2025, through March 29, 2026, for any amount charged above the legal limit.

Officials calculated that guests were owed $216,795 for overcharges made between January and April 2025 alone. Any refunds that cannot be delivered after reasonable attempts to locate guests must be paid to the Los Angeles County Department of Consumer and Business Affairs, according to prosecutors.

The settlement also requires Langham to adjust any automated or algorithmic pricing systems to prevent unlawful rate increases during future states of emergency.

Langham cooperated with the investigation and did not admit liability, prosecutors said.

California law generally prohibits businesses from raising prices by more than 10% during a declared emergency unless the increase can be justified by higher costs. Los Angeles County officials have extended hotel price-gouging protections through March 29, 2026.

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