Management at the posh London Hotel in NYC are considering legal action after they learned that a groupie’s hair weave caught on fire in one of their hotel rooms.

Music mogul Sean “Puffy” Combs, 41, had rented the Penthouse Tuesday night for a private party to celebrate the release of his sixth studio album, Last Train To Paris.

The incident occurred in the Penthouse’s master bath, where a groupie was soaking in the tub surrounded by tealight candles. At one point she got too close to one of the candles and her highly flammable weave instantly went up in flames à la Michael Jackson in that famous Pepsi commercial.

The woman was unhurt. But sources say she too may be considering taking legal action against Combs.

The projected 1st week sales for Last Train To Paris is 56,000 copies.

Per TMZ.com:

Sources connected with the hotel say they are meeting today to discuss what happened inside Diddy’s hotel room when a model’s hair caught fire. We’re told the incident violates hotel regulations and hotel honchos may ban Diddy permanently from the hotel.

Our sources say hotel management knew nothing about the incident until it was posted on Ustream last night.

The London — the hottest hotel in New York City — is particularly concerned because it attracts a huge number of high-profile clients, and management wants everyone who stays there to know the hotel is a safe place.

As one hotel honcho fumed, “We are not happy with Diddy.”