Harris County and the Houston Sports Authority have taken legal action against a local hospitality company, accusing it of failing to fulfill its tax obligations. The complaint was filed by Harris County and the Houston Sports Authority in the District Court of Harris County on November 27, 2024, targeting Wanderstay Hotels, LLC, also known as Wanderstay Hospitality Group or Wanderlust Houston: A Texas Hostel.
The plaintiffs, Harris County and the Houston Sports Authority, allege that Wanderstay Hotels has not paid hotel occupancy taxes as required by law. According to the lawsuit, the defendant operates a hotel establishment known as Wanderstay East Downtown located at 520 Sampson Street in Houston. The plaintiffs claim that under Chapter 352 of the Texas Tax Code and a resolution from the Sports Authority, hotels are mandated to collect taxes on room occupancy and remit these taxes to the county. Despite this requirement, Wanderstay Hotels allegedly owes $12,877.36 in unpaid taxes, penalties, and interest.
The complaint further details that these tax payments are due quarterly but have remained unpaid despite demands for payment. The plaintiffs argue that this failure to comply with tax regulations has caused harm to both Harris County and the Houston Sports Authority. As a result of this alleged non-compliance, they are seeking recovery of all owed taxes along with any additional penalties and interest that may accrue until a final judgment is made.
In addition to seeking financial restitution, Harris County and the Houston Sports Authority are requesting injunctive relief against Wanderstay Hotels. They seek a temporary injunction to prevent the hotel from operating until all delinquent tax reports are filed and outstanding taxes are paid. The plaintiffs argue that such an injunction is necessary to ensure compliance with state tax laws moving forward.
Representing Harris County in this case is Christian D. Menefee, Harris County Attorney, with Erum Jivani serving as Senior Assistant County Attorney. The case has been assigned Case ID 2024-83759 in the 190th Judicial District Court of Harris County.