The owners of the Kingsway Hall hotel in central London have launched a legal battle for compensation in a row over an IT system.
The hotel company is suing RedSky IT (Hounslow) for damages of up to £150,000 over the hotel management system, which it brands deficient.
It claims the system, installed by RedSky, overcharged customers, showed rooms as booked when they were not, and often froze, needing to be unlocked.
Kingsway paid £50,000 for the system in its 170 bedroom property in Covent Garden but argued that it is unsatisfactory and not fit for purpose.
The hotel company says it made it clear to RedSky that unless defects were put right by 31 March last year, it would have no option but to reject the system and equipment.
RedSky failed to resolve the problems and defects by that date and the equipment was rejected.
The system was replaced with an alternative, the Protel System, and Safe software, at a cost of more than £30,000.
Kingsway said it had suffered substantial inconvenience and disruption to its business, as well as lost profits of more than £60,000.
By Sarah Limbrick