Thunderbird sued over Comdex rate hike

Brian Seals

Wednesday, Nov. 18, 1998 | 11:27 a.m.

Three Thunderbird Hotel residents sued the business, alleging they did not receive adequate notice of eviction and room-rate increases ordered just before the Comdex convention.

Las Vegas gambling legend Bob Stupak, original developer of the Stratosphere Tower, is a shareholder in the low-rent Thunderbird. Stupak said today that after being informed that inadequate notice was given, nobody at the roughly 300-room hotel was evicted.

Residents were told they could stay without the increase until Nov. 22.

The three residents said they received notice Nov. 8 that weekly guests at the hotel could stay no longer than noon Saturday, Nov 14. They said they were also told that rent would be accepted only on a daily basis, not weekly as before.

The trio sought a restraining order preventing the eviction, though they ultimately were not thrown out and court action was not needed.

The aborted eviction date was to have been the weekend before the Comdex convention, which draws about 226,000 people and puts hotel rooms at a premium.

"The change of policy usually occurs every year at Comdex," said Nevada Legal Services attorney David Olshan, who filed the suit on behalf of the residents.

The rate was to rise from $16.50 per day to $119 per day. Stupak did not deny the hotel sought to hike rates during Comdex, but noted the weekly guests were allowed to stay at the original rate.

"At every hotel they change (during Comdex), that's a fact. So what?" Stupak said.

Olshan agreed the hotel had the right to raise rates, and even evict. However, he said his goal was to make sure the residents received adequate notice required under Nevada law -- a 15-day notice of any rent increase and a five-day notice of eviction if rent is not paid.

"Clearly, under Nevada law they can pursue everything they are doing," Olshan said. "We just wanted adequate notice."