Wondering what is a resort fee? It’s a mandatory nightly charge added to your room rate, often for facilities. Since the FTC rule took effect May 12, 2025, it must appear in the advertised total price.
This guide is one of our hotel travel tips for planning a stay without surprises at checkout.
| Item | Value |
|---|---|
| FTC Rule on Unfair or Deceptive Fees took effect | May 12, 2025 |
| Hotels with resort or facility fees in Checkbook’s sample | 48 of 75 hotels |
| Range of those resort or facility fees | $2 to $60 per night |
| Average added by mandatory hotel fees in that sample | $27 a night |
| FTC estimate of consumer search time saved by the rule | Up to 53 million hours per year |
The figures come from Checkbook’s consumer report and Hotel Dive’s report on the FTC’s final rule. Fees and rules can change, so check the source before you rely on them.
What is a resort fee and what does it cover?
A resort fee is a mandatory charge a hotel adds on top of the quoted room rate, charged per night. Checkbook’s researchers described these charges as “resort or facility fees”, which hints at what they are meant to pay for.
What a particular fee covers is up to the hotel’s own description. As summarized by Kelley Drye on May 6, 2025, FTC staff gave an example of resort fees added automatically for use of facilities. Staff reasoned that a reasonable consumer would expect use of the hotel facilities to be included in the price.
The same summary offers a plainer comparison: if towels are not included in a hotel stay, then a hotel would need to list a towel fee. The principle is that a charge you can’t reasonably avoid belongs in the price you see first.
Why resort fees became a regulatory issue
The core complaint is about timing. According to Hotel Dive’s December 17, 2024 report, the FTC announced a final rule aimed at “bait-and-switch pricing” for short-term lodging, so that guests are not surprised by “resort,” “service” or “convenience” fees at checkout.
An FTC attorney quoted by Checkbook said the goal of the rule is “to facilitate comparison shopping and informed consumer choices.” That is hard to do if one hotel’s fee stays hidden until the last booking step while another’s is shown up front.
The FTC estimated, per Hotel Dive, that the rule will save consumers up to 53 million hours per year spent searching for the total price of lodging and events.
The sources used for this guide don’t spell out why individual hotels choose to charge these fees, so we stick to what they document: how the fees are presented and how the rule treats them.
How much do resort fees add to a stay?
Checkbook’s researchers collected prices for 75 sample stays at three-, four-, and five-star hotels in major cities. They found that 48 of the 75 hotels charged resort or facility fees, ranging from $2 to $60 per night.
On average, mandatory hotel fees added $27 a night, according to Checkbook’s report. Checkbook describes the research as collected a few years ago, so treat the amounts as an illustration, not a current price list.
Because the fee is charged per night, a longer stay multiplies it. That is why the all-in total matters more than the headline nightly rate.
What the FTC fees rule requires from hotels
The rule is the FTC’s Rule on Unfair or Deceptive Fees, and Checkbook reports it took effect on May 12, 2025. As described by Hotel Dive, it asks hotels and similar sellers to do the following:
- Advertise pricing inclusive of all mandatory fees up front, even in ads or offers.
- Display the total price more prominently than other pricing information.
- Disclose the nature, purpose, identity and amount of the fees before you consent to pay.
The rule does not ban any particular type of fee, per Hotel Dive. A resort fee can still exist, but it has to be counted in the total.
FTC staff FAQs, as summarized by Kelley Drye on May 6, 2025, add detail. Businesses must describe what fees are for and avoid vague phrases like “convenience fees,” “service fees” or “processing fees.” They can itemize mandatory fees, but the itemized fees must not overshadow the total price.
The same summary says short-term lodging includes hotels, home shares and vacation rentals. It also says the rule reaches third-party platforms, resellers and travel agents, not only the hotel itself. The FAQs are described there as staff’s view and not binding on the Commission.
Some charges can be left out of the headline total. Per Kelley Drye’s summary, businesses may exclude government, shipping and optional charges, but must disclose them before asking for payment. Fees that depend on choices you make during the transaction, such as optional features for hotel rooms, are an example.
How to compare the real price of a hotel stay
You can’t control how a hotel names its fees, but you can check them in a consistent way. Try these steps before you book:
- Compare the all-in total for your dates, not the nightly headline rate.
- Read what the fee is said to cover. A vague label such as “service fee” is a prompt to look closer.
- Check whether the charge is mandatory or depends on an upgrade you choose.
- Look at whether any fee is described as refundable, and at what point it is charged.
Businesses must tell the truth about any fee detail they choose to convey, like whether a fee is refundable, according to Kelley Drye’s summary. So read the hotel cancellation policy alongside the price breakdown.
The rule covers vacation rentals as well as hotels. That makes a hotel vs vacation rental comparison fairer, because both sides should now show an all-in total.
Frequently asked questions
Is a resort fee mandatory?
Show answer
Usually, yes. FTC staff, as summarized by Kelley Drye, treat fees added by default as mandatory when a business removes them only if the consumer asks, and they use resort fees as an example.
Did the FTC ban resort fees?
Show answer
No. As Hotel Dive describes the final rule, it governs how prices are shown: mandatory fees have to be folded into the total advertised up front.
Does the rule apply to booking sites and travel agents?
Show answer
As of Kelley Drye’s May 6, 2025 summary of the FTC staff FAQs, it covers any business that offers, displays or advertises short-term lodging, including third-party platforms, resellers and travel agents.
Can a hotel show the resort fee as a separate line?
Show answer
Yes, businesses can itemize mandatory fees, according to Kelley Drye. The itemized fees must not overshadow the total price.
Do these rules apply outside the United States?
Show answer
The sources used here cover only the FTC’s rule, which is a US federal rule. They don’t describe how other countries treat resort fees, so check local rules if you are booking abroad.
