Pictured is the lobby at The Ritz-Carlton, Charlotte.
Erik Spanberg
Senior Staff Writer- Charlotte Business Journal
A little more detail trickled out Wednesday regarding the controversial service charge applied by The Ritz-Carlton, Charlotte during the CIAA basketball tournament in February. The hotel released a statement apologizing for what it called an “automatic gratuity of 15 percent” and said all of the money went to the servers working in the hotel lobby lounge.
CIAA fans noticed the Ritz lounge included the automatic 15 percent fee on their bills with the label “CIAA Svc Chrg.” Neither the CIAA, a conference of historically black colleges and universities, nor the Charlotte Regional Visitors Authority, the city’s tourism arm, knew about the charge.
Executives from the conference and the tourism authority said they were disappointed by the hotel’s decision to impose a fee aimed at CIAA fans. WBTV and other news outlets began scrutinizing the service charge after fans made the issue a subject of concern on Twitter and other social media sites. Almost immediately, a debate began over whether the Ritz fee was racially motivated. Some labeled it a “black tax.”
The N.C. attorney general’s office sent the hotel a letter last week seeking details on how and why the fee was charged. A spokeswoman for the attorney general told me Wednesday four complaints have been received regarding the service charge. The investigation is continuing and, to date, the Ritz hasn’t responded to the questions posed by the state.
“We’re still within the 10-day window requested for their response,” said Noelle Talley, the attorney general’s spokeswoman.
The hotel statement released Wednesday reads as follows:
“The Ritz-Carlton, Charlotte apologizes to any guests we may have offended for the addition of a service charge that was implemented during a recent event in our lobby lounge. The service charge was an automatic gratuity of 15 percent that was distributed in full to the servers who worked the event. The service charge was not intended to offend anyone and we are deeply sorry for any misunderstanding we may have caused. The Ritz-Carlton, Charlotte is also cooperating fully with the North Carolina Attorney General’s inquiry into this matter. We are committed to ensuring that all guests feel welcomed at our hotel and receive the highest level of service, respect and hospitality we strive for every day at The Ritz-Carlton, Charlotte.”
Spending by fans and others in town for the CIAA basketball tournament totaled $47 million in 2014, according to the tourism authority. The 2015 tournament marked the first year of a new contract that keeps the event here through 2020.
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Erik Spanberg covers government, sports business, hospitality and airlines for the Charlotte Business Journal.
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