Hotel closed - Section 75 advice please

TroubledTraveller123

I wonder if anyone can help. Hotel we have booked to stay in New York in October - I’ve not various Facebook and Trip Advisor posts that the hotel has been closed down.  Thankfully picked up on this as numerous people have been caught and only finding this out on arrival.
We actually stayed at this hotel last year and despite mixed reviews it was exactly what we needed - as a family of 5 - big room in excellent location - all be it tired in places.
I’ve tried to make contact with the hotel group and not having any joy via email or phone so thinking Section 75 with my Credit Card is the way to go. (Booked direct and paid in full when booked last November due to it being such a good price).
While I’m hopeful there shouldn’t be an issue getting what we’ve paid back - getting an alternative hotel seems to be reiterating how good a deal we had with it looking likely of costing an extra £800-£1000 for a replacement hotel.   

I’ve read about consequential extras and wondering if the difference in cost is likely to be something we have a case to claim through section 75 or even travel insurance for?
Any thoughts or advice would be much appreciated.  Thanks in advance 

bagand96

The issue you may have trying to claim Section 75 at the moment is that the merchant (Hotel) have not yet failed to provide the service paid for.  They won't fail to provide the service until you arrive in October and find it closed (obviously not a situation you want!).  At the moment you might need to wait and give the hotel chance to respond, or the hotel chain if it's part of a bigger chain.

TroubledTraveller123 said:

While I’m hopeful there shouldn’t be an issue getting what we’ve paid back - getting an alternative hotel seems to be reiterating how good a deal we had with it looking likely of costing an extra £800-£1000 for a replacement hotel.   

I’ve read about consequential extras and wondering if the difference in cost is likely to be something we have a case to claim through section 75 or even travel insurance for?
Any thoughts or advice would be much appreciated.  Thanks in advance 

Section 75 only makes the bank jointly liable for the contract with the hotel.  What does the contract/terms of the booking say about cancellations?  If the T&Cs allow, they may be able just to get back in touch with you and cancel your reservation with a refund.  In that scenario you wouldn't be able to claim additional costs from the hotel, and therefore neither the bank.

TroubledTraveller123

Thanks for your response. Totally makes sense on all fronts.  Will keep on chasing the hotel group and see if can get anything of use. 

DullGreyGuy

TroubledTraveller123 said:

I wonder if anyone can help. Hotel we have booked to stay in New York in October - I’ve not various Facebook and Trip Advisor posts that the hotel has been closed down.  Thankfully picked up on this as numerous people have been caught and only finding this out on arrival.
We actually stayed at this hotel last year and despite mixed reviews it was exactly what we needed - as a family of 5 - big room in excellent location - all be it tired in places.
I’ve tried to make contact with the hotel group and not having any joy via email or phone so thinking Section 75 with my Credit Card is the way to go. (Booked direct and paid in full when booked last November due to it being such a good price).
While I’m hopeful there shouldn’t be an issue getting what we’ve paid back - getting an alternative hotel seems to be reiterating how good a deal we had with it looking likely of costing an extra £800-£1000 for a replacement hotel.   

I’ve read about consequential extras and wondering if the difference in cost is likely to be something we have a case to claim through section 75 or even travel insurance for?
Any thoughts or advice would be much appreciated.  Thanks in advance 

Which hotel is it? Is it permanently closed or just closed for refurb?

With this you would be looking at a Chargeback rather than S75 in the first instance which is an easier process. You can always go back to S75 if the Chargeback fails but struggle to see how it could if its permanently closed and the hotel group haven't done anything about your booking. 

Given you are repeat customers are you part of the groups loyalty programme? Can you log into their site to see what its showing about your booking? 

eskbanker

DullGreyGuy said:

With this you would be looking at a Chargeback rather than S75 in the first instance which is an easier process. You can always go back to S75 if the Chargeback fails but struggle to see how it could if its permanently closed and the hotel group haven't done anything about your booking. 

But surely chargeback would only secure a refund of what OP had paid, whereas s75 would be needed in order to (try to) get the card company to stump up for the additional costs of replacement accommodation?

DullGreyGuy

eskbanker said:

DullGreyGuy said:

With this you would be looking at a Chargeback rather than S75 in the first instance which is an easier process. You can always go back to S75 if the Chargeback fails but struggle to see how it could if its permanently closed and the hotel group haven't done anything about your booking. 

But surely chargeback would only secure a refund of what OP had paid, whereas s75 would be needed in order to (try to) get the card company to stump up for the additional costs of replacement accommodation?

The S75 almost certainly would just refund the monies paid, it will be an uphill struggle to claim any increase in prices given you are looking at different hotels and therefore they can always argue that the price increase is because you are going for a better hotel than the one originally booked. 

It is possible to split it though, claim the cost back as a chargeback and then S75 for the consequential losses as per https://www.financial-ombudsman.org.uk/decision/DRN-4438985.pdf where they did exactly this for the own flight tickets and the complaint is in relation to the DCS problems that meant their other two bookings were declined. 

I would argue that an economy flight is an economy flight so much easier to compare. The OP may argue that a 4* hotel is a 4* hotel but I would say there is vastly more variance particularly as they admit that a year ago the place was already rundown. 

bagand96

eskbanker said:

DullGreyGuy said:

With this you would be looking at a Chargeback rather than S75 in the first instance which is an easier process. You can always go back to S75 if the Chargeback fails but struggle to see how it could if its permanently closed and the hotel group haven't done anything about your booking. 

But surely chargeback would only secure a refund of what OP had paid, whereas s75 would be needed in order to (try to) get the card company to stump up for the additional costs of replacement accommodation?

Strangely I think to reclaim additional costs you'd be better positioned if you actually turned up to find a hotel closed or no rooms.  Because that way they would have reneged on the contract and you'd have been compelled to book an alternative if they failed to do so. Even though that scenario would be an very undesirable start to a holiday! 

This far in advance the hotel may just be able to refund the booking, which if the T&Cs allow them to do would be the end of the matter.

A grey area maybe if over the coming months the OP is not able to get any contact from the hotel and/or the chain. 

TroubledTraveller123

Thanks all for the input here. Hotel is The Blakely by Luxurban and they don’t appear to do anything like loyalty clubs.

Given I knew where we were going booked the non refundable option as didn’t anticipate this situation panning out.

It appears definitely permanently closed based on Google and the Marshals notice posted on the hotel door.

It’s the deafening silence that’s proving most frustrating.

thanks again all for your input - is much appreciated - will update if and when get anywhere

Hoenir

Hotel is most definately closed. They are probably working through bookings made in chronological order. Hence the lack of response so far with your booking for October. 

DullGreyGuy

Hoenir said:

Hotel is most definately closed. They are probably working through bookings made in chronological order. Hence the lack of response so far with your booking for October. 

It looks odd, no where official actually states it's closed however booking sites are showing no dates at all being available. LuxUbran's own site still has it listed as one of their properties. A single trade website had it listed as Blakely New York formally The Blakely by LuxUrban but still offered no dates. 

Looks like the freeholder has ceased the building back so presumably they weren't paying their rent which may not bode well for their financial position, not that its automatically true as could be the LL was being unreasonable and having them cease it was cheaper than payout what they wanted etc.

Grumpy_chap

The OP does not travel until October.
I suspect that S75 would not offer any protection until the OP has travelled and found the hotel to be closed - that is when there has been a breach of contract which makes the CC jointly liable.
S75 does not, to the best of my knowledge, cover anticipatory breach.
That does not offer the OP any comfort in the meantime.

In the meantime, though, quite a lot could happen.  I would not be surprised if the reason for no contact is that, behind the scenes, there are discussions for another operator to take over the hotel and fulfil the booking-bank.  As a minimum, you'd expect the Administrators to try that as a means of recovering value for the creditors of the failed business.