A Hampton Inn in Lakeville, Minnesota canceled reservations for federal immigration agents in early January 2026, and within 48 hours the Hilton hotel lost its franchise, was removed from every federal lodging program, and became the center of a national fight over whether a business can refuse service to ICE. The refusal itself likely did not violate anti-discrimination law, because occupation and employer are not protected categories. What sank the hotel were its contracts: the federal government’s lodging rules and Hilton’s franchise standards both required it to serve all federal agencies, and it didn’t.
What the Hotel Did
In late December 2025, DHS Secretary Kristi Noem announced that Homeland Security Investigations agents were in Minneapolis on a fraud investigation. Agents began booking rooms in the area using official government email addresses and government per diem rates. Around January 2, 2026, staff at the Lakeville Hampton Inn noticed the influx of federal reservations and started canceling them.1ABC News. DHS Accuses Hotel of Canceling Reservations for Immigration Agents
The cancellation emails were explicit. One told a guest: “We have noticed an influx of GOV reservations made today that have been for DHS, and we are not allowing any ICE or immigration agents to stay at our property.” Another said staff had researched the guest online, “found information about immigration work connected with your name,” and would be canceling the reservation. Employees were told to spread the word to coworkers.2CNBC. DHS Accuses Hilton Hotel of Canceling Immigration Agent Reservations in Minneapolis
On January 5, DHS posted the redacted emails on X and accused Hilton of “a coordinated campaign in Minneapolis to REFUSE service to DHS law enforcement.” Assistant Secretary Tricia McLaughlin wrote that Hilton “maliciously CANCELLED” the reservations and asked whether the chain was “siding with murderers and rapists.”3KRCG TV. Hilton Accused of Undermining DHS by Canceling Immigration Agents’ Bookings
How Hilton and the Franchise Owner Responded
The property was owned and managed by Everpeak Hospitality, which had purchased the hotel for $15 million.4Times of India. US Hotel That Denied Rooms to ICE Agents Was Bought by Four Indian-Americans for $15 Million Everpeak issued a statement on January 5 calling the cancellations “inconsistent with our policy of being a welcoming place for all,” denying that it discriminated against any individuals or agencies, and apologizing to the affected guests.5Reuters. Hilton’s Minneapolis Hotel Cancels Reservations for Law Enforcement Officers, DHS Says
Hilton’s corporate office pointed out that the property was “independently owned and operated” and said the cancellations were “not reflective of Hilton values.” The chain has more than 9,000 properties worldwide, most run by third-party franchisees.2CNBC. DHS Accuses Hilton Hotel of Canceling Immigration Agent Reservations in Minneapolis
The apology unraveled the same night. Conservative influencer Nick Sortor visited the Lakeville property and recorded a front desk clerk saying on camera that the hotel was still refusing federal agents. “We’re not accepting people from immigration, ICE agents, DHS, into our property,” the clerk said, adding that she had spoken with the owner and nothing had changed.6Star Tribune. Hilton Removes Minnesota Hotel From Chain for Refusing to House ICE Agents
The video contradicted Everpeak’s public statement from hours earlier. On January 6, Hilton revoked the franchise. “The independent hotel owner had assured us that they had fixed this problem,” the company said. “A recent video clearly raises concerns that they are not meeting our standards and values. As such, we are taking immediate action to remove this hotel from our systems.” Hilton added that it would reinforce brand standards with its other franchisees.7Hotel Investment Today. Hilton Kicks Out Hampton Not Selling to ICE8Business Insider. Hilton Says Removing Hotel From System Over ICE Controversy
The Federal Response
On the same day Hilton pulled the franchise, GSA Administrator Edward C. Forst announced that the Lakeville property had been removed from all government lodging programs, including FedRooms, Emergency Lodging Services, and Long Term Lodging. Forst said the hotel was “in clear violation of its government lodging program requirements,” which require participating properties to honor reservations from all federal agencies without exception.9GSA. GSA Removes Minnesota Property From All Government Lodging Programs
The GSA action reached only the single Lakeville property, not other Hilton-branded hotels. McLaughlin said on January 9 that “discriminatory business practices targeting DHS and deliberately undermining federal law enforcement are unAmerican and have real business consequences.”10Journal Record. Hilton Removes Minneapolis Hotel Over ICE Bookings
Can a Hotel Legally Refuse Service to ICE Agents
Under existing civil rights law, probably yes. Title II of the Civil Rights Act of 1964 bars hotels from discriminating on the basis of race, color, religion, or national origin. It says nothing about occupation, employer, or agency affiliation.11U.S. Department of Justice. Title II of the Civil Rights Act – Public Accommodations The Minnesota Human Rights Act protects categories like race, sex, disability, and sexual orientation. Occupation and employment status are not on that list.12Minnesota Department of Human Rights. Frequently Asked Questions
That is the anti-discrimination question, and it is not what took the hotel down. The consequences came through contracts. The GSA’s government lodging programs require participating hotels to accept reservations from every federal agency, which gave the agency clear grounds to remove the property.9GSA. GSA Removes Minnesota Property From All Government Lodging Programs Hilton’s franchise agreement gave the company its own authority to end the relationship when a franchisee failed to meet brand standards. Both moves happened in a matter of hours once the video surfaced.
The practical lesson for a business thinking about turning federal agents away: the exposure is not usually a civil rights lawsuit. It is the loss of contracts, franchises, and access to federal programs that depend on nondiscrimination among government customers.
What Happened to the Property
After the franchise was pulled in January 2026, the hotel at 20851 Keokuk Avenue kept operating independently as the Lakeville Inn.13Minneapolis/St. Paul Business Journal. Lakeville Inn Immigration Hampton It lost Hilton’s reservation system, access to government lodging programs, and a recognized chain brand in a single day.
Why Federal Agents Were Booking Rooms in Minneapolis
The reservations that set off the dispute were tied to a large federal enforcement presence in the Twin Cities. Federal prosecutors estimated that fraudulent claims across 14 Minnesota Medicaid-funded programs could total as much as $9 billion, with preliminary assessments indicating that more than half of the $18 billion in taxpayer funding for those programs had been stolen.14The Hill. Homeland Security Fraud Investigation Minneapolis
The current work built on earlier prosecutions, including the “Feeding Our Future” case, a COVID-era fraud scheme tied to a USDA-funded child nutrition program that produced charges against 47 defendants in September 2022. By late 2025, DHS had launched “Operation Metro Surge,” deploying more than 2,000 agents to the Twin Cities and pairing Homeland Security Investigations with ICE immigration enforcement. Critics, including the State of Minnesota, called the blend pretextual.15CBS News Minnesota. Homeland Security Fraud Investigation Minneapolis Minnesota, Minneapolis, and Saint Paul sued DHS in January 2026, alleging that agents were conducting “general sweeps” and “door-to-door investigations” beyond the scope of the fraud cases.16Minnesota Attorney General. State of Minnesota v. DHS, Complaint