Key MarginBoutique hotels. Real returns.
Independent boutique hotel investment researchUnited States

Direct questions

27. Can a hotel still charge resort or destination fees under the FTC rule?

Key Margin research deskSection 01Page 27 of 35

Yes—the federal rule does not ban resort fees or set their amount, but mandatory fees generally must be included in the displayed total price. It also prohibits misleading fee information. The rule took effect on May 12, 2025. (ftc.gov)

FTC guidance explains that unavoidable charges belong in the total price and that itemization must not overshadow that total. Certain excluded charges, including government charges and genuinely optional additions, require appropriate disclosure before payment. (ftc.gov)

Our recommended acquisition and operating checks are:

  • Test the direct booking journey and major distribution channels.
  • Compare the first displayed price with the final payment amount.
  • Identify every automatically applied charge.
  • Confirm that optional purchases are actually optional.
  • Reconcile fee revenue and related service costs in the accounts.
  • Ask counsel to review relevant state and local requirements as well.

Underwriting implication: do not assume that moving part of the guest’s required payment into a separately named fee creates new economic demand. Model the customer’s total price, the hotel’s realized revenue and the cost of the promised services separately.

Sources cited on this page

  1. FTC Rule on Unfair or Deceptive Fees to Take Effect on May 12, 2025 | Federal Trade Commissionftc.gov
  2. The Rule on Unfair or Deceptive Fees: Frequently Asked Questions | Federal Trade Commissionftc.gov