Hilton Hotels found itself at the center of a heated national controversy this week after the company revoked the franchise license of a Lakeville, Minnesota, hotel accused of refusing service to federal immigration agents and then misrepresenting its policies to both the public and its parent company. The swift and highly publicized decision, announced on January 6, 2026, underscores the challenges facing major hospitality brands in enforcing their standards across a vast network of independently operated properties.
The drama began to unfold when Nick Sortor, a right-wing influencer and independent journalist, visited the Hampton Inn by Hilton in Lakeville. Posing as a U.S. Department of Homeland Security (DHS) official, Sortor attempted to book a block of rooms for DHS employees. The interaction, captured on video and posted to social media, showed a front desk clerk telling Sortor, "We're not accepting people from immigration, ICE agents, DHS onto our property ... it's just policy." The video quickly went viral, amassing nearly two million views and igniting a firestorm of criticism directed at both the hotel and Hilton itself, according to Fox News and CNBC.
Just a day earlier, Everpeak Hospitality—the independent owner and operator of the Lakeville Hampton Inn—had issued an apology for previously canceling reservations for real DHS agents. The company insisted that such actions were "not consistent with our policy of being a welcoming place for all." Everpeak further claimed, "We are in touch with the impacted guests to ensure they are accommodated. We do not discriminate against any individuals or agencies and apologize to those impacted." The apology, however, was directly contradicted by the video Sortor posted, in which the front desk clerk maintained that the ban was still in effect and had received no notice of a policy change from the owner, as reported by CNBC and The New York Post.
The incident came at a time of heightened federal activity in the Minneapolis area. According to Reuters, approximately 2,000 federal workers—including up to 1,500 ICE Enforcement and Removal Operations officers and hundreds of Homeland Security Investigation agents—were deployed to the region on January 4, 2026, as part of a major immigration enforcement operation. The Lakeville Hampton Inn, however, made it clear to federal agents that they were not welcome. In emails sent to DHS agents, hotel staff wrote, "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. If you are with DHS or immigration, let us know as we will have to cancel your reservation." These emails, with names and addresses redacted, were later shared publicly by DHS and ICE, further fueling the controversy.
The Department of Homeland Security responded with unusually sharp rhetoric, blasting Hilton in a statement posted to X (formerly Twitter) on January 5, 2026. "When officers attempted to book rooms using official government emails and rates, Hilton Hotels maliciously CANCELLED their reservations. This is UNACCEPTABLE," the statement read. DHS went even further, asking, "Why is Hilton Hotels siding with murderers and rapists to deliberately undermine and impede DHS law enforcement from their mission to enforce our nation's immigration laws?" The post included screengrabs of the hotel’s emails and quickly drew national attention, as reported by CNBC and Fox News.
Hilton, for its part, was quick to distance itself from the Lakeville property. In a statement posted to X and shared with multiple news outlets, the company said, "The independent hotel owner had assured us that they had fixed this problem and published a message confirming this. 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 further emphasized, "Hilton is — and has always been — a welcoming place for all. We are also engaging with all of our franchisees to reinforce the standards we hold them to across our system to help ensure this does not happen again."
Everpeak Hospitality’s earlier apology now appeared hollow in light of the new evidence, and Hilton’s decision to revoke the franchise was praised by some observers. Billionaire hedge fund manager Bill Ackman, a Hilton shareholder, lauded the company’s "responsiveness" and credited CEO Chris Nassetta for personally intervening. "Hilton is one of the best-managed companies in the world. Its CEO, Chris Nassetta, is one of the most outstanding CEOs in the world. I know that he is highly respected by President Donald Trump and the current administration," Ackman wrote on social media, as reported by Fox News. "Chris became personally involved in this situation from the moment he became aware of it and took immediate action."
The incident also played into broader political tensions in Minnesota and nationally. Minneapolis has been a focus of criticism by the Trump administration, which has highlighted alleged fraud and criminal activity in the region’s Somali community. In December, President Donald Trump described Minnesota as "a hellhole right now," blaming immigrants for a series of federal program frauds. DHS Secretary Kristi Noem had recently announced a major investigation into childcare and other fraud in Minneapolis, further raising the stakes for local businesses caught in the crosshairs of federal enforcement and political scrutiny, as noted by CNBC.
Local officials were not immune to the fallout. Minnesota Governor Tim Walz, who had been the Democratic nominee for vice president in 2024, dropped his plan to seek a third term, citing the ongoing fraud probes and the Trump administration’s focus on immigrants in the state. "Every minute I spend defending my own political interests would be a minute I can't spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences," Walz said, according to CNBC.
The controversy has prompted Hilton to launch a broader review of its franchise operations. The company announced it would be "engaging with all of our franchisees to reinforce the standards we hold them to across our system to help ensure this does not happen again." With more than 9,000 properties worldwide, most operated by independent franchisees, Hilton’s ability to enforce brand standards is now under the microscope.
For its part, Everpeak Hospitality has remained largely silent in the wake of Hilton’s decision, declining to comment further beyond its initial apology. The affected guests—DHS and ICE agents—were reportedly contacted and offered alternative accommodations, but the damage to the hotel’s reputation appears to be lasting.
This episode has become a flashpoint in the ongoing national debate over immigration enforcement, corporate responsibility, and the limits of franchise autonomy. As Hilton moves to repair its image and reinforce its standards, the hospitality industry—and the public—will be watching closely to see how similar issues are handled in the future.
In the end, Hilton’s decisive response may set a new standard for how global brands address discrimination and uphold their values, even when franchisees fall short.