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A hotel can still charge a resort fee, but in the United States a covered hotel or booking platform must include a mandatory resort fee in the upfront total price it advertises. The Federal Trade Commission’s Rule on Unfair or Deceptive Fees took effect May 12, 2025. It requires clearer price disclosure; it does not ban resort fees or set their amount.
What is a hotel resort fee?
A resort fee is a charge a hotel adds to the room price, often describing it as payment for amenities or services. Hotels may use other names, including destination, facility, or amenity fee. The label does not determine whether the charge is mandatory: what matters is whether the guest must pay it to complete the booking or stay.
The FTC’s FAQ illustrates the rule with a hypothetical $199 nightly rate plus a mandatory $39-per-day resort fee. Those figures are an agency example, not an average or a claim about current hotel prices. Under the rule, the advertised total must include the mandatory $39 fee. FTC FAQ, May 2025
Are resort fees mandatory, and can hotels charge them?
A hotel may charge a resort fee; the federal rule does not prohibit a particular fee or cap its amount. It regulates how covered businesses advertise prices and describe charges. The FTC says businesses can continue to charge fees if they disclose the total price upfront and do not misrepresent fee information. FTC effective-date announcement, May 2025
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A fee is not optional merely because a guest could object after it has been added. The FTC treats charges required in every case, charges that cannot reasonably be avoided, and charges for services required or reasonably expected as part of the transaction as mandatory. Its FAQ specifically says that a resort fee automatically charged and waived only if the guest notices and challenges it must be included in the total price. FTC FAQ
Fee descriptions must also be truthful. A business should identify what the charge is for and must not misstate its amount, purpose, or refundability. For example, the FTC says calling a charge an “environmental fee” would be deceptive if the money is not actually used for sustainability or conservation. FTC FAQ
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What the federal hotel-fee rule requires
Since May 12, 2025, the FTC’s Rule on Unfair or Deceptive Fees, 16 C.F.R. Part 464, has applied to covered businesses that offer, display, or advertise short-term lodging prices. This includes hotels and third-party platforms, resellers, and travel agents. The requirements apply to covered price displays online, in apps, in physical locations, and through other means.
When a covered business advertises a lodging price, it must disclose upfront the total price it knows and can calculate, including mandatory fees. That total must be more prominent than other pricing information. A business may separately itemize a resort fee, but the itemization does not replace or obscure the total. FTC FAQ FTC announcement
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Charges that may be excluded from the initial total
The rule allows businesses to leave certain charges out of the initially displayed total: taxes and other government charges, shipping, and charges for optional ancillary goods or services. For a hotel booking, this means taxes or a genuinely optional add-on may appear later in the process. Before asking for payment, however, the business must disclose excluded charges and the final amount. It should state the nature, purpose, and amount of each excluded charge and identify the good or service. The final amount must be at least as prominent as the total price. FTC FAQ
Which lodging arrangements are covered?
The FTC FAQ covers short-term lodging such as hotels, motels, inns, short-term rentals, and vacation rentals. It does not set a fixed number of nights that makes a stay “short-term”; classification depends on the circumstances. Ongoing landlord-tenant arrangements and certain corporate housing offered under long-term-lease conditions are excluded, so the rule should not be treated as applying categorically to every residential lease. FTC FAQ
How to compare hotel prices fairly
Compare the prominent total price for equivalent stays, not just the room rate shown in a search result. Match the dates, number of guests, room type, cancellation terms, and booking channel. Then review the breakdown so you can see which charges are mandatory, which are taxes or government charges, and which are optional.
- Check whether a resort, destination, facility, or amenity fee is included in the upfront total.
- Read what each fee supposedly covers, and check whether it is described as refundable.
- Review optional add-ons separately from charges you must pay.
- Before authorizing payment, compare the final amount with the advertised total and the disclosed taxes or optional items.
- Save the listing, confirmation, and receipt so you can compare what was quoted with what was charged.
If the same hotel appears on more than one booking channel, compare the full final amounts using the same stay details and conditions. Taxes may be excluded from the initial total under the federal rule, but a mandatory resort fee should be reflected in the covered upfront total. These steps help identify a price difference; they do not guarantee that a dispute will result in a refund. FTC FAQ
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What to do if a resort fee appears unexpectedly
- Ask for an explanation. Contact the hotel or booking platform and ask what the fee covers and where it was disclosed in the price you saw.
- Keep the records. Save screenshots of the advertised price and fee breakdown, plus your confirmation and receipt.
- Compare the quoted and charged amounts. Note whether the fee was mandatory, whether it appeared in the advertised total, and when it was disclosed in checkout.
- Report suspected deceptive pricing. If you believe a fee was misleading or omitted from a covered advertised total, the FTC FAQ directs consumers to its fraud-reporting channel. Whether a particular charge violates federal, state, or local law depends on the transaction and applicable rules; a refund is not automatic. The FTC says violations can lead to orders to comply, consumer refunds, and civil penalties. FTC FAQ
State and local rules can add protections
The federal rule does not replace every state or local hotel-fee requirement. The FTC instructs businesses to follow applicable state and local laws as well. If a local law gives consumers greater protection, the business must comply with that protection. Federal law supersedes a local requirement only to the extent that the two directly conflict and cannot both be followed. FTC FAQ
New York City offers a dated example. Section 5-15 covers businesses and people advertising hotel-stay prices for NYC hotels or to NYC consumers. It requires the total price, including mandatory fees other than government-imposed taxes and fees, to be clearly disclosed and more prominent than other pricing information. The online code says the section was added January 22, 2026, and took effect February 21, 2026. A provision about disclosing deposit and card-hold policies is scheduled to take effect January 22, 2027. The code publisher cautions that its database may not always reflect the latest adopted legislation, so check the current local rule before relying on a future effective date. NYC § 5-15
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