This week, the administration of New York City Mayor Zohran Mamdani issued a final rule banning hotels across the city and country from charging consumers hidden fees—often labeled as “destination fees,” “resort fees” or “hospitality service fees”—as well as unexpected credit card holds or deposits. In a statement, the administration said these fees "cheat consumers and hurt honest small businesses.” The city’s Department of Consumer and Worker Protection reportedly received more than 300 complaints from consumers related to hidden hotel fees or unexpected holds last year.
Mayor Zohran Mamdani joined Commissioner Sam Levine and business, consumer and labor leaders to announce DCWP’s final rule banning junk fees on hotel stays. This rule aims to “protect both consumers coming to New York City and New Yorkers traveling elsewhere around the country,” according to the statement. Some economists estimate that banning hotel junk fees will save consumers more than $46 million in 2026. The junk fee prohibitions of the final rule go into effect in New York City on Feb. 21.
DCWP proposed a rule modeled on a Federal Trade Commission rule that makes it a deceptive trade practice under the City’s Consumer Protection Law to offer, display or advertise a price for a hotel without clearly and conspicuously disclosing the total price of the stay, including all mandatory fees. The new rule goes a step further than the FTC's rule requiring transparency on mandatory credit card holds or deposits taken as well.
According to the American Hotel & Lodging Association, the final rule also requires hotels to provide a disclaimer about credit/debit card holds at the time of checkout. The language creates a new disclosure standard that will apply to any hotel advertising to a “NYC Consumer,” regardless of the hotel’s location. Those provisions are scheduled to take effect in one year.
“Whether you’re visiting the five boroughs for the World Cup or leaving our city for a well-deserved vacation, you deserve to know how much a hotel costs up front. This new rule will ensure that New Yorkers and visitors alike are not stuck paying hidden hotel fees, and will instead save millions of dollars each year,” Mamdani said in the statement. “In just three weeks, our administration has made it clear that deceptive business practices do not have a home here—and that City Hall will always fight for New Yorkers to know exactly what they’re paying for.”
“This final rule delivers on affordability—for New Yorkers traveling across the country to see the World Cup, and visitors who want to experience our incredible city,” Levine said. “DCWP will use its full enforcement authority to ensure hotels comply with the laws and rules of our city and we will be vigilant to ensure consumers have transparency in their transactions and that workers’ rights are respected.”
Hotels in New York City are also required to comply with other key consumer and worker protections, including the Hotel Service Disruption Act, which requires that consumers be notified of changes to service during their stay, and the Safe Hotels Act, which prohibits illegal subcontracting at hotels.