Brown Palace Hotel faces operational challenges under new management

Guests have complained about issues such as “low water pressure, fluctuating water temperatures and in some cases no hot water.” A burst pipe that flooded 12 rooms on the sixth floor, including the main restaurant and a meeting room, took over a year to repair. The ballroom also experienced flooding.

In response to these problems, management reduced room rates below $100 on some nights, attracting "a rise in drunken and disruptive guests." With reduced revenue, HEI Hotels & Resorts replaced long-time employees known for high-quality service with new staff. According to reports, “[m]ore homeless people entered the hotel and fentanyl contamination showed up in lobby bathrooms.”

HEI attributes staffing reductions in 2024 to pandemic-related challenges. Remaining employees were informed they “no longer work for a hospitality company” but “for a real estate company” instead. The property lost its Forbes Travel Guide four-star rating after maintaining it for 62 years.

“It doesn’t matter how much investment comes back into that property; the damage from the neglect is incalculable,” Kley lamented. “[Management company] HEI steps over dollars to pick up dimes. They don’t want the money that comes with providing service.”

Concerns have been raised about hiring practices at HEI properties. For instance, a homeless man was reportedly hired as chief handyman with access to all rooms.

Additionally, there are complaints about HEI's approach to tipping policies. The CEO allegedly expressed a desire to push guests to tip more so workers could be paid less.

Reports also mention issues at other HEI-run properties such as The Westin Fort Lauderdale Beach Resort, which faced criticism for adding surcharges for credit card payments against Marriott's guidelines.