Hilton shares fall after DHS says Minneapolis hotel canceled reservation due to immigration enforcement

The U.S. Department of Homeland Security publicly accused Hilton Hotels on Monday of launching a "coordinated campaign" to refuse service to its law enforcement officers in Minneapolis, causing the hotel chain's stock price to dip approximately 2%. The dramatic accusation centers on DHS claims that a Hilton property abruptly canceled reservations made by officers using official government emails, citing a policy of not allowing "immigration agents" to stay.

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DHS took to social media to voice its outrage, posting a message titled "NO ROOM AT THE INN!" alongside screenshots of alleged emails The emails stated the property had noticed an influx of government reservations and would not permit Immigration and Customs Enforcement (ICE) or immigration agents to stay, warning that reservations would be canceled. "Why is Hilton Hotels siding with murderers and rapists to deliberately undermine... law enforcement?" the DHS post questioned.

Hotel Franchisee and Hilton Issue Apologies, Blaming Local Policy Violation
In response, both Hilton corporate and the franchise operator, Everpeak Hospitality, swiftly distanced themselves from the incident, attributing it to actions by an independently owned property that violated brand standards. Hilton stated the actions were "not reflective of Hilton values," while Everpeak Hospitality called the incident "inconsistent with our policy of being a welcoming place for all." Both entities apologized and said they were contacting the impacted officers to ensure accommodation.

The incident occurs amid a significant federal law enforcement surge in Minneapolis. DHS Secretary Kristi Noem recently indicated that Homeland Security Investigations agents are on the ground conducting a massive probe into alleged childcare and benefits fraud, with reports suggesting a deployment of up to 2,000 agents to the Twin Cities area.

Historical Context and Escalating Tensions
This is not the first clash between Hilton and federal immigration enforcement. In 2020, during the previous Trump administration, Hilton issued a corporate policy stating it opposed the use of its hotels as detention centers for migrants, including minors, and expected properties to reject such business. The current dispute highlights the ongoing tension between corporate social policies, the operational independence of franchisees, and the federal government's enforcement priorities. It also underscores the administration's willingness to publicly pressure private companies perceived as obstructing its agenda.

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