A Minnesota hotel has landed in hot water with both federal authorities and its own corporate parent. The trouble started when the staff refused to let immigration enforcement agents check in. That move quickly backfired, leading to a total ban on government business and the loss of the hotel's famous franchise identity.
The General Services Administration, also known as the GSA, has officially cut the Hampton Inn Lakeville off from federal contracts. It is a move designed to send a stark warning that discriminating against law enforcement is unacceptable.
Administrator Edward C. Forst Takes Action
This situation really blew up once internal messages came to light showing this wasn't an accident. It was a planned policy to keep federal law enforcement out. Emails released by the Department of Homeland Security and ICE confirmed the hotel's stance. The text explicitly stated they were "not allowing any ICE or immigration agents to stay at our property."
The response from Washington was swift and uncompromising. GSA Administrator Edward C. Forst, who was nominated by President Donald Trump and sworn in on Christmas Eve, intervened immediately. Upon learning that rooms reserved for ICE had been cancelled, the agency reviewed the incident and determined it was a breach of contract.
'After I was informed that a local Hilton property cancelled rooms reserved for ICE, GSA immediately reviewed the matter and found the hotel to be in clear violation of its government lodging programme requirements,' Forst stated. He confirmed that the property had been removed from all booking tools effective immediately, adding that the 'GSA unequivocally supports our federal law enforcement partners.'
Viral Video Cost the Hotel Its Hilton Name
While the federal government was busy cutting financial ties, the hotel was hit with a second wave of backlash from its own parent company. Hilton Hotels initially attempted to mediate, noting that the location was independently owned and operated. The corporation released a statement claiming the venue had apologised and reiterated that 'properties are open to everyone, and we do not tolerate any form of discrimination.'
However, the situation deteriorated rapidly on Tuesday morning. A viral video posted to X by freelance journalist Nick Sortor contradicted the narrative that the issue had been resolved. The footage seems to capture a front desk worker refusing to back down and denying the agents a room. That decision went completely against the public image Hilton tries to maintain.
Faced with visual evidence that the franchisee was ignoring corporate standards, Hilton took drastic action. 'A recent video clearly raises concerns that they are not meeting our standards and values,' the company announced. 'As such, we are taking immediate action to remove this hotel from our systems. Hilton is — and has always been — a welcoming place for all.' Consequently, the hotel was stripped of its Hilton branding and removed from the company website.
Cut Off From Four Million Federal Employees
The GSA's ruling goes way deeper than a simple PR headache because it is a direct hit to the business's bottom line. The hotel has been kicked out of FedRooms,
Hilton says it is removing the Minnesota hotel from its system that was accused of denying ICE agent bookings after the company says the franchisee failed to address the issue. https://t.co/2AR4jDKbSY pic.twitter.com/pWkQKLUo1X
— FOX 2 Detroit (@FOX2News) January 7, 2026
which is the program that arranges approved lodging for government workers and military travelers.
By losing this certification, the property is cut off from a massive potential client base. The total federal workforce, including active-duty military and civilian employees, exceeds 4 million people. Sources indicated that the hotel had accommodated federal agents for roughly 130 total nights the previous year, a revenue stream that has now completely dried up.
The GSA is the agency tasked with managing the basic functioning of federal bodies, including travel logistics. By terminating emergency and long-term lodging services at the property, the agency has effectively blacklisted the hotel from government business. Forst and the GSA moved fast, and that speed really drives the point home. It shows the administration is ready to step in and protect federal workers when private businesses try to target them over politics.
Originally published on IBTimes UK
