NYC Bans Hidden Hotel Fees, Aiming To Save Consumers $46 Million

NEW YORK, NY — The city government issued a final rule banning hotels from charging hidden “junk fees” on Tuesday, which prohibits hotels from advertising a room rate without clearly disclosing the full price of a stay, including all mandatory fees.

The rule, announced by Mayor Zohran Mamdani and Sam Levine, the consumer and worker protection commissioner, also requires transparency around credit card holds and deposits.

The protections take effect in New York City on Feb. 21.

Hotels have frequently advertised low base rates while adding mandatory charges later in the booking process, labeling them as “destination fees,” “resort fees” or “hospitality service fees.”

The regulation is modeled in part on a Federal Trade Commission rule that treats undisclosed mandatory fees as a deceptive trade practice. New York City’s rule goes further by requiring hotels to clearly disclose any mandatory credit card holds or deposits.

Mamdani said those practices obscure the true cost of a stay and make it difficult for consumers to compare prices at different hotels.

“You deserve to know how much a hotel costs up front,” Mamdani said.

In 2025, the city’s Department of Consumer and Worker Protection received more than 300 complaints related to hidden hotel fees or unexpected credit card holds. Some economists estimate the new rule will save consumers more than $46 million in 2026.

Levine said the department would use its full enforcement authority to ensure compliance

“Transparency is not optional,” he said. “Consumers have the right to understand the true cost of what they’re buying.”

Hotels must also comply with existing city laws, including the Hotel Service Disruption Act, which requires notice of changes to services during a stay, and the Safe Hotels Act, which bars illegal subcontracting and strengthens worker protections.

Who This Affects

• Travelers to and from New York City: Visitors booking hotels in the five boroughs and New Yorkers staying at hotels elsewhere will see clearer, all-in pricing.
• Hotel operators: Properties must update advertising, booking platforms and payment practices to disclose total prices and any mandatory holds or deposits.
• Workers and small businesses: City officials say the rule levels the playing field for compliant hotels and reinforces broader worker-protection laws already in effect.