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Settlement reached in insurance fight tied to Springfield Wyndham

2 weeks ago in Business, Crime, Local

The hotel was shut down in March 2025 after an investigation by the Springfield Fire Department, Springfield police and the Illinois Fire Marshal into the condition of the building, who added that it looked like the property was intentionally vandalized. Photo: Shutterstock


Springfield, IL (WAND) – Court documents show that the lawsuit between the owners of the Springfield Wyndham hotel and its insurance company Affiliated FM has been settled.

The hotel was shut down in March 2025 after an investigation by the Springfield Fire Department, Springfield police and the Illinois Fire Marshal into the condition of the building, who added that it looked like the property was intentionally vandalized.

The suit was filed after owner Al Rajabi claimed that Affiliated FM was stalling the insurance payment.

At the time, Rajabi said he was losing thousands of dollars on canceled reservations and events.

A countersuit against Rajabi by the company claimed that he colluded to cause the damage to the hotel and added that it would not pay out the claim.

The exact details of the settlement are unknown.

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Story © 2026 WAND News - Images © 2026 Shutterstock

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