Hilton Garden Inn employees said they haven't been paid the last few months and have taken the issue to the labor board and West Virginia Attorney General.
City officials said the hotel also owes more than $120,000 in hotel taxes.
Half of that money exclusively funds the Greater Clarksburg Convention and Visitors Bureau.
"The City of Clarksburg has five hotel properties. The Hilton Gardens revenue generated about half of our budget so it is very significant so it is going to definitely adversely affect us this summer, unfortunately," said Kathie Titus, Clarksburg Visitor's Bureau.
The CVB said it uses the money to help fund fairs and festivals.