At least 15 major hotels in the U.S. are quietly
undertaking mold-related cleanup and renovations.
That's according to Dan Lentz, a partner in the
investigations and dispute advisory practice of accounting firm Ernst &
Young LLP. But "there's no way to get a definitive count," he says. Because
mold problems at a property can lead to litigation, "it would be imprudent
for owners to let the news get out," says Mr. Lentz.
The costs associated with fixing a serious mold problem can
exceed 50% of a hotel's initial construction cost, which doesn't include
injury claims filed by hotel employees and guests who have been exposed to
the mold-infested areas of the property, according to an Ernst & Young
report on the hotel industry that is scheduled to be released in about a
month.
"Virtually any building is a potential candidate for mold
problems whether they're commercial, residential or hospitality related,"
says Mr. Lentz, who advises clients on how to deal with litigation and
insurance claims that involve mold. "Usually that depends on initial
construction and geography. But the risk of litigation is higher for
properties where there are residents or tenants that are there with
regularity. That situates hotels and residential properties as exposed to
greater risk to lawsuits than say, commercial buildings or warehouses."
