Mamdani bans hidden ‘junk fees’ at NYC hotels
Hotels in New York City and beyond are now barred from charging hidden “junk fees” that often add unexpected costs to bookings. Mayor Zohran Mamdani announced the final rule Wednesday, which is projected to save millions by banning fees labeled as “destination” or “resort” charges, as well as unexpected credit card holds or deposits. Taking effect February 21, the rule also applies to businesses outside the city that advertise prices to New Yorkers.
When booking a hotel room, the listed price is often not what you actually pay. Many hotels tack on “junk fees,” advertising a base rate but later revealing mandatory charges that leave customers feeling deceived. Some also place unexpected credit card holds or deposits with misleading terms.
In 2025, the city’s Department of Consumer and Worker Protection (DCWP) received over 300 complaints about hidden hotel fees or unexpected credit card holds.
In response, DCWP proposed a rule modeled on Federal Trade Commission policy that classifies such practices as deceptive under the city’s Consumer Protection Law. The rule requires hotels to clearly disclose the total price of a stay, including all mandatory fees, and also mandates transparency around credit card holds or deposits.
The rule, originally developed under former Mayor Eric Adams, had already gone through a public hearing process, according to Gothamist.
Hotels in NYC must also comply with other consumer and worker protections, including the Hotel Service Disruption Act, which requires notifying customers of changes to service during their stay, and the Safe Hotels Act, which prohibits illegal subcontracting.
Economists estimate the new rule could save consumers over $46 million in 2026, according to a press release.
The final rule continues Mamdani’s push to hold companies accountable and shield New Yorkers from deceptive practices. He has already issued two executive orders targeting citywide junk fees and subscription traps and created a Citywide Junk Fee Task Force to go after predatory businesses.
“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,” Mamdani said. “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.”
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