A Las Vegas hotel is facing accusations of using artificial intelligence to generate misleading images for a fictional hotel, the 'Palette Hotel,' to attract customers to its existing, poorly-rated property, the Oyo Hotel. Ariana Patiño, a traveler, reported that after booking a stay at the 'Palette Hotel' through a third-party site, she discovered upon arrival that the hotel did not exist. The address provided led her to the Oyo Hotel, a establishment known for its poor reviews and maintenance issues.
Patiño shared her experience on TikTok, detailing how she was initially confused when she could not locate the 'Palette Hotel' using GPS. After contacting customer service, she was directed to the Oyo Hotel, where staff confirmed that 'Palette' was a new listing intended to attract more bookings. Patiño stated she had deliberately avoided booking the Oyo Hotel due to its negative reputation, only to find herself there after booking the seemingly separate 'Palette Hotel.'
Her account described poor conditions at the Oyo, including alleged elevator malfunctions requiring her to carry luggage up 18 flights of stairs, inadequate air conditioning, a musty smell, dirty carpets, and broken outlets. The listing for the 'Palette Hotel' has since been removed from booking sites like Expedia and Booking.com.
In a statement, Oyo Hotels acknowledged the incident, attributing it to a listing that went live prematurely. The company stated that it was evaluating how different room categories could be positioned under different brands as part of a dual-brand strategy. However, the 'Palette' listing was activated before renovations and signage were completed. Oyo has stated it is reaching out to affected guests to explain the situation and offer solutions, including potential upgrades or refunds.
This incident highlights broader concerns about deceptive marketing in the travel industry. Jennifer Gay, a Las Vegas influencer who covers local hotels, confirmed the Oyo Hotel's notorious reputation, describing rooms as potentially hazardous due to stains, fluids, and lack of cleanliness. Gay expressed concern that such practices, particularly the use of AI-generated images for non-existent or misrepresented properties, could erode consumer trust and place an undue burden on travelers to verify listings.
The Oyo Hotel, originally opened in 1973, has a history of changing ownership and names, most recently operating as the Hooters Casino Hotel before being acquired by Oyo Hotels & Homes. Its location near the site of a new stadium development has been noted as a potential factor in its strategic positioning, with some speculating about future property value and potential rebranding efforts. Despite its poor reviews, the hotel reportedly remains busy due to its low prices, a common phenomenon in Las Vegas where cost can sometimes outweigh reputation for certain travelers.