The Wall Street Journal reported March 3 that at least 15 major U.S. hotels are undertaking mold-related cleanup and renovations—but quietly. Dan Lentz, a partner in the investigations and dispute advisory area of Ernst & Young LLP says a definitive count is unlikely because mold problems at a property can lead to litigation. “It would be imprudent for owners to let the news get out,” he said.
The article also says that mold remediation can sometimes exceed half of a hotel’s initial construction cost—not including injury claims filed by guests and employees.
“Virtually any building is a potential candidate for mold problems, whether they’re commercial, residential or hospitality-related,” Lentz said. “The risk of litigation is higher for properties where there are residents or tenants that are there with regularity.”
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