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LAS VEGAS, Nev (Gambling911.com) - A shock report this week reveals that a Las Vegas hotel is allegedly using "catfishing" tactics to lure unsuspecting visitors into booking hotel rooms that do not exist.
Catfishing is the act of creating a fake online identity or social media profile to trick someone. People who do this often use stolen photos and false personal details. When companies engage in the practice, it's often referred to as "corporate catfishing".
The Vegas accusations involve budget hotel operator OYO Hotel & Casino, whose parent company PRISM recently acquired the Motel 6 brand. And, to put this in some perspective, Motel 6 in general tended to have "glowing" reviews when compared to some OYO properties, which we will get to shortly.
OYO warns has warned customers about individuals impersonating OYO employees or property managers, fake customer-service accounts, fake payment requests and phishing. Importantly, OYO says these people are not connected with OYO.
This week's reports and viral social media posts seem to point the finger at OYO itself for helping push a non-existing property called the Palette Las Vegas, though it was not immediately clear who exactly is behind the scheme or if OYO corporate management had any knowledge.
Ironically, traveler Ariana Patiño says she booked the Palette Las Vegas to avoid staying at the OYO.
Surprise!
From Networkin Las Vegas:
Palette Las Vegas has been listed at 117 East Tropicana Avenue, the same address as OYO Hotel & Casino Las Vegas, the former Hooters Casino Hotel and, before that, the San Remo. As of August 13, Palette listings could be found on major travel sites including Booking.com, Expedia, Travelocity, Orbitz and Trip.com. OYO’s own website was also actively selling rooms under the Palette Las Vegas name.
According to her account, when she questioned hotel staff about the missing Palette hotel, she was told Palette didn’t actually exist and that the listing had been put up to see which advertisement would get more traction.
The Palette listings used altered images that appeared to present the existing property as something different. Vital Vegas reports that AI was used to manipulate the images.
It’s certainly nothing new for hotels to exaggerate their offerings — and we’re being generous with the word “exaggerate.” Even the most run-down motels on the internet can put together a decent presentation, carefully showcasing their best features while conveniently leaving out the rest.
After all, sleazy Motel X isn’t exactly going to advertise: “Roach-infested rooms, broken microwaves, moldy showers and no air conditioning.”
The Palette Hotel scheme is something beyond this.
OYO isn’t exactly hiding the corporate connection now, either. The company’s own reservation website has a live page titled “Palette Las Vegas” at 117 East Tropicana Avenue. The listing promises “contemporary comfort,” “thoughtfully designed rooms,” Strip views, outdoor pools and an “elevated experience.” Oddly enough, the description itself switches the address to 115 E. Tropicana in several places even though the listing header says 117 E. Tropicana.
Booking.com and Expedia are reportedly investigating the listings.
OYO has faced litigation from hotel owners/franchisees alleging fraudulent inducement, misrepresentations and nondisclosure concerning its business arrangements. These allegations concern business practices rather than employees creating fake personal identities to cultivate people.
Oddly enough, OYO's Las Vegas hotel and casino is considered among the company's most upscale properties.
Here is a typical "good" review of this property found on Google:
"Well let’s start by saying even though it was not the fanciest of hotels. And the elevators broke down a couple of times. I felt safe and the atmosphere was great."
"The Staff were amazing! Location was close to the strip. The cost was ok for a dump."
More common are reviews like this one:
"I booked a very specific room intentionally. It was a king size pool view room, i was told this was the ONLY room that came with a mini fridge. (I booked this room because I have medication that needs to be refrigerated.) I called 2 separate times before our arrival to confirm that we had booked the right room. Upon our arrival we were given a king size suite with a strip view with no mini fridge. The room was filthy the floors had not been mopped the tub was full of hair."
OYO hotels across the U.S. have been shuttered in recent years for maintaining accommodations that were in the minus star categories, assuming such a designation existed. We are talking properties that have since been condemned.
The company's rapid-growth, asset-light model historically made consistent property-level quality control difficult. OYO historically expanded by signing independently owned budget hotels and putting the OYO brand, reservation technology and pricing/marketing systems on them. OYO typically does not own the property where its name appears.
This Tulsa, Oklahoma OYO branded hotel has since been condemned by the city
And the catfishing issue appears to extend beyond Vegas....to properties that actually do exist but are now closed.
A Louisiana man said he was scammed after booking a room at a hotel in Jackson, Mississippi that turned out to be closed.
Jermaine Anderson, from Shreveport, said his experience began when he booked a two-night stay at the OYO Hotel on I-55 North.
Anderson said that when his Lyft driver dropped him off Saturday evening, a woman outside the building informed him the hotel was shut down.
"That’s when the young lady comes from the side of the building. She says, 'Yeah, you’re like the eighth or ninth person who's come here, and we are completely shut down.' And I say, 'Why would they say they're open for business [and] there's a sign that says it's open?'" Anderson said.
OYO Hotel & Casino Las Vegas does not appear to have publicly addressed allegations circulating on social media that the property has been marketed to travelers under alternate hotel names.
The Palette Hotel may be gone however.
Last night, searching the property address on https://booking.com
all three names appeared as "featured". A few minutes ago only the Oyo brand appeared.
OYO insists it has moved toward firmer contractual standards and incentives tied to better guest ratings.
The $525 million acquisition of G6 Hospitality, owner of Motel 6 and Studio 6, is probably the biggest indication of a different U.S. strategy. Industry experts have said acquiring a long-established American hotel brand could improve OYO's U.S. brand equity, direct bookings and repeat business.
- Alejandro Botticelli, Gambling911.com
