Hotel Security and Liability for Guests' Valuables

Introduction

The hotel industry is susceptible to crime, and hotels need to provide adequate security measures — including security boxes for the safe custody of guests' valuables. Hotels shall not be liable for any loss if a guest neglects to deposit valuables in the security box, unless the hotel keeper caused the loss through fault or negligence. This paper examines that premise by analysing the relevant statutes and the measures taken — or to be taken — by hotels for the security of guests' valuables.

Hotels are essentially service businesses, and security is of prime importance to their success. Security concerns extend beyond guests themselves to include the safety of valuables and other belongings that guests are likely to carry during travel. Hoteliers are responsible for the protection of property just as they are for the security of their guests. Although a hotel's legal liability is often limited — with primary responsibility resting on guests themselves — hotels must maintain essential security systems and provide safe-locking facilities as part of their standard services. This obligation is mandated by statute in several states.

Hotels are susceptible to criminal activity because they are public places with a high turnover of wealthy visitors. Poor security systems raise the risk of crime against guests significantly. Exposure to crime not only intimidates guests but also adversely affects the reputation and goodwill of a hotel, and ultimately its business. As one industry observer noted: "In customer interviews and surveys, security is now a top priority. Fifteen years ago, it wasn't even one of their concerns" (Etheridge, 2003). Security is therefore an indispensable investment, not an optional expenditure.

Definitions

Before examining the susceptibility of hotels to crime, the legal requirements of security and safekeeping of guests' valuables, and the various security measures adopted by hotelkeepers, it is useful to define the key terms used throughout this paper. For this purpose, the definitions provided in Statute 486K of the Consumer Action and Information Center of Hawaii are applied and described below.

"Guest" means a person who is registered at the hotel and to whom a bedroom is assigned. The term includes not only the guest but also members of the guest's family who accompany them.

"Hotel/Hotel-condo" means an establishment consisting of any building or structure used primarily for providing transient accommodation lodging facilities for consideration, and that furnishes, as part of its routine operations, one or more customary lodging services — other than living accommodations and the use of furniture and fixtures — including, but not limited to, restaurant facilities, room attendant, bell, telephone switchboard, laundering, or concierge services, and is subject to the transient accommodations tax.

"Keeper" includes any person, firm, or corporation actually operating a hotel.

"Security box" means any metal or alloy box used in a hotel for the safekeeping of valuables, which may be securely locked with a locking mechanism that meets or exceeds Underwriters Laboratories standards and which is secured in a manner that precludes its removal from the room.

"Valuables" includes money, bank notes, bonds, precious stones, jewellery, ornaments, watches, securities, transportation tickets, photographic cameras, checks, drafts, and other negotiable instruments, business papers, documents, and other papers, and other articles of value.