NY hotel to pay out after Sept 11 hike

A New York hotel that overcharged stranded travellers for rooms after the September 11 terrorist attacks has agreed to pay a $9,500 (£6,000) penalty, state Attorney General Eliot Spitzer said.

The Days Inn hotel raised rates for some rooms from a posted rate of $139 to $399 (£92-£260) a night.

A state of emergency was declared in New York after the terrorist attacks, and the law forbids raising prices for vital goods and services during an emergency.

The Long Island hotel has also agreed to give refunds to overcharged consumers, Spitzer said. Gerard Lynch, assistant general manager of the Days Inn, called it an ‘‘oversight’’.

‘‘As soon as we understood the magnitude of the situation, our prices were lowered.’’