NYC Bans Hidden Hotel Fees and Surprise Credit Card Holds Under Mamdani Administration
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New York City Mayor Zohran Mamdani holds press conference to announce continued efforts to end junk fees at the Whitney Museum of American Art on Wednesday, January 21, 2026. -Photo by Michael Appleton/Mayoral Photography Office
By Staff Reporter
January 21, 2026
NEW YORK, NY — Booking a hotel room in New York City is about to get a lot more transparent.
Mayor Zohran Mamdani announced today that the city has finalized a new rule banning hidden hotel junk fees and unexpected credit card holds, a move that consumer advocates say will save travelers millions of dollars and eliminate one of the most common complaints about hotel stays.
The rule, issued by the New York City Department of Consumer and Worker Protection (DCWP), prohibits hotels from advertising a room price that doesn’t include all mandatory fees. It also requires hotels to clearly disclose any credit card holds or deposits—before a customer books.
The regulation takes effect February 21, 2026.
Why New York City Is Banning Hotel Junk Fees
If you’ve ever booked a hotel room only to discover extra charges labeled as “resort fees,” “destination fees,” or “hospitality service fees,” you’re not alone.
According to DCWP, the agency received over 300 consumer complaints in 2025 alone related to hidden hotel fees and surprise credit card holds. Many travelers reported seeing one price online, only to pay significantly more once mandatory fees were added at checkout—or after arrival.
“These fees make it nearly impossible for consumers to compare prices and understand the true cost of a hotel stay,” DCWP officials said.
Under the new rule, failing to disclose the total price of a hotel stay upfront will be considered a deceptive trade practice under New York City’s Consumer Protection Law.
What the New Rule Requires Hotels to Do
The DCWP rule mandates that hotels operating in New York City must:
- Clearly and conspicuously disclose the total price of a hotel stay, including all mandatory fees
- Stop advertising base room rates that exclude required charges
- Transparently disclose credit card holds or deposits, including amount, timing, and release conditions
- Avoid misleading language that obscures mandatory costs
While the rule applies to hotels in New York City, it also protects New Yorkers traveling elsewhere, as many large hotel chains operate nationwide.
Some economists estimate that banning hotel junk fees could save consumers more than $46 million in 2026 alone.
“You deserve to know the real price,” said Mayor Mamdani. He framed the rule as part of a broader effort to restore trust between consumers and 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.”
The mayor added that the administration is sending a clear signal that deceptive business practices will not be tolerated in New York City.
DCWP officials noted that the rule is modeled on a Federal Trade Commission (FTC) junk fee regulation, but goes further.
While the FTC rule focuses primarily on price transparency, New York City’s regulation also requires explicit disclosure of credit card holds and deposits, a frequent source of consumer frustration.
“This final rule delivers on affordability,” said DCWP Commissioner Sam Levine. “We will use our full enforcement authority to ensure hotels comply and that consumers have transparency in their transactions.”
DCWP will be responsible for enforcing the rule, with violations subject to penalties under city law.
The announcement also builds on other recent actions by the Mamdani administration, including:
- Executive orders targeting junk fees and subscription traps
- The creation of a Citywide Junk Fee Task Force
- Enforcement of the Hotel Service Disruption Act, which requires disclosure of service changes
- Enforcement of the Safe Hotels Act, which protects workers from illegal subcontracting
Together, city officials say these measures ensure that New York’s hotel industry is fair, transparent, and compliant with worker protection laws.
For travelers booking hotels in New York City, the change is simple but significant: the price you see must be the price you pay—with no surprises at checkout or on your credit card statement.
As the 2026 World Cup and other major events approach, city leaders say the rule will help ensure visitors experience New York without unexpected costs overshadowing their stay.
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