Adam's Mark Hotels settles race bias lawsuits

March 21, 2000
Web posted at: 6:56 p.m. EST (2356 GMT)

WASHINGTON (CNN) -- Adam's Mark Hotels and Resorts will implement sweeping changes in its policies toward minorities and pay $8 million in a settlement of racial discrimination lawsuits.

The case stems from complaints by students who attended the Black College Reunion in Daytona Beach, Florida, last April.

Justice Department officials announced Tuesday that the St. Louis-based chain of luxury hotels has agreed to implement nondiscriminatory practices, attract more minority customers and pay $8 million in monetary relief.

	MESSAGE BOARD
State of race relations

About $4.4 million will be divided among hundreds of African-Americans who attended the Daytona Beach event, and qualify under a class-action lawsuit.

"Adam's Mark is the first hotel chain of its kind to take such comprehensive affirmative steps to prevent discrimination in its hotels," said Attorney General Janet Reno.

Fred Kummer, president of Adam's Mark, issued an apology and a pledge to offer equal treatment to all its guests.

"While Adam's Mark is committed to equality and has never intentionally done anything wrong, we apologize for any actions that may have made any of our guests feel uncomfortable or unwelcome," Kummer said.

Complaints from five black students who said they were required to display color-coded wristbands and pay higher prices led to private civil rights lawsuits, and prompted the five-month federal investigation.

The students filed a class-action lawsuit in Orlando, Florida, in May 1999, alleging discriminatory treatment of students who stayed at the Daytona Beach Adam's Mark Hotel during the Black College Reunion weekend held in April 1999.

In December, both the Justice Department and the state of Florida filed suits.

The federal lawsuit alleged that the chain placed minorities in less desirable rooms than white guests, or segregated them to the least desirable areas of the hotel. The Justice Department suit also accused Adam's Mark Hotels of charging minorities higher room rates and different prices for goods and services than those charged to white guests.

The government also accused the chain of applying stricter security, reservation and identification requirements for minorities. In addition, the suit accused the hotel of limiting the number of minority clientele in the hotel restaurants, bars, and clubs.

Florida alleged violations of state consumer protection laws.

Florida Attorney General Bob Butterworth and the students' attorney, John Lerman, joined Reno Tuesday in announcing the settlement.

Lerman praised the five students who stepped forward to sue the hotel. He said each of them would receive $25,000. Lerman said as many as 1,200 guests who stayed at the Daytona Beach hotel, as well as an undetermined number of visitors, may qualify for a share of the $4.4 million settlement.

Although the suit charged a pattern of discrimination at all of the chain's hotels, damages will go only to guests or visitors at the Daytona Beach facility.

Officials said about $1.5 million of the settlement will go to four historically black colleges in Florida for scholarships and internships in hotel management programs.

Adam's Mark Hotels chain is owned and operated by HBE Corp. of St. Louis. With the addition of three new facilities opening this year, the chain will own 24 hotels in 14 states.

Producer Terry Frieden contributed to this report.

Video Vault: Students sue Daytona Beach hotel for racial bias
May 21, 1999
Two hotels challenge NAACP survey on minority business practices
June 30, 1998

Adam's Mark Hotels & Resorts
Black College Reunion Weekend 2000, Daytona Beach Florida
Historical Black College and University Reunion Weekend
U.S. Department of Justice

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.