New York City, January 22, 2026
New York City has enacted a new rule to ban hidden hotel fees and unexpected credit card holds, promoting transparency for consumers. Set to take effect in 2026, the legislation is expected to save travelers over $46 million annually. This initiative follows numerous consumer complaints about deceptive practices in the hotel industry. Hotels will now be required to disclose the total booking price, including all fees upfront, ensuring clearer pricing and enhanced consumer protection.
New York City Bans Hidden Hotel Fees and Unexpected Credit Card Holds
New York City – The Mamdani administration has implemented a final rule prohibiting hotels from charging hidden fees and imposing unexpected credit card holds or deposits. This measure aims to enhance transparency for consumers and is projected to save millions of dollars annually.
Key Details of the New Rule
- Effective Date: The rule will take effect on February 21, 2026.
- Scope: Applies to all hotels in New York City and nationwide.
- Consumer Impact: Expected to save consumers over $46 million in 2026.
Background and Rationale
In 2025, the Department of Consumer and Worker Protection (DCWP) received over 300 complaints from consumers regarding hidden hotel fees and unexpected credit card holds. These deceptive practices often involve additional charges labeled as “destination fees,” “resort fees,” or “hospitality service fees,” which are not disclosed upfront. The new rule mandates that hotels must clearly disclose the total price of a stay, including all mandatory fees, at the time of booking. It also requires transparency regarding any credit card holds or deposits. This initiative aligns with the administration’s broader efforts to combat deceptive business practices and protect consumers.
Additional Consumer Protections
The Mamdani administration has also signed executive orders to address other deceptive practices, such as subscription traps and hidden fees in various industries. These actions are part of a comprehensive strategy to ensure fair business practices and protect New Yorkers from unexpected costs.
Industry Response
While the new rule is expected to benefit consumers, it may impact hotel revenue streams that rely on additional fees. Industry stakeholders are assessing the potential effects and considering adjustments to their pricing structures to comply with the new regulations.
Conclusion
The Mamdani administration’s ban on hidden hotel fees and unexpected credit card holds represents a significant step toward greater transparency and fairness in the hospitality industry. Consumers can look forward to clearer pricing and a reduction in unexpected charges during their stays.
FAQ
What is the new rule implemented by the Mamdani administration?
The Mamdani administration has implemented a final rule prohibiting hotels from charging hidden fees and imposing unexpected credit card holds or deposits. This measure aims to enhance transparency for consumers and is projected to save millions of dollars annually.
When does the new rule take effect?
The rule will take effect on February 21, 2026.
Who does the new rule apply to?
The rule applies to all hotels in New York City and nationwide.
How much is expected to be saved by consumers in 2026 due to this rule?
Consumers are expected to save over $46 million in 2026 due to this rule.
What prompted the implementation of this new rule?
In 2025, the Department of Consumer and Worker Protection (DCWP) received over 300 complaints from consumers regarding hidden hotel fees and unexpected credit card holds. These deceptive practices often involve additional charges labeled as “destination fees,” “resort fees,” or “hospitality service fees,” which are not disclosed upfront.
What other consumer protections has the Mamdani administration implemented?
The Mamdani administration has also signed executive orders to address other deceptive practices, such as subscription traps and hidden fees in various industries. These actions are part of a comprehensive strategy to ensure fair business practices and protect New Yorkers from unexpected costs.
Key Features of the New Rule
| Feature | Description |
|---|---|
| Effective Date | The rule will take effect on February 21, 2026. |
| Scope | Applies to all hotels in New York City and nationwide. |
| Consumer Impact | Expected to save consumers over $46 million in 2026. |
| Transparency Requirements | Hotels must clearly disclose the total price of a stay, including all mandatory fees, at the time of booking. |
| Credit Card Holds | Requires transparency regarding any credit card holds or deposits. |
Now Happening on X
- @NYDailyNews (Jan 22, 2026, 2:45 AM): Mamdani announces ban on NYC hotels adding ‘junk fees’ to cost of stay. View on X
- @MamdaniWatch (Jan 22, 2026, 2:18 AM): Breaking: Zohran Mamdani announces price controls on hotels, highlighting the new rule against hidden fees. View on X
- @JessicaLBurbank (Jan 21, 2026, 10:14 PM): Mayor Mamdani discussed NYC’s ban on hidden hotel fees on the show today. View on X
- @SIAdvance (Jan 22, 2026, 1:08 AM): Mamdani says new rule will protect New Yorkers from hotel ‘junk fees’. View on X
- @mosesjeans (Jan 21, 2026, 5:20 PM): Mamdani announces banning junk fees on hotel stays in New York City to protect locals and visitors. View on X
- @supersat (Jan 22, 2026, 4:55 AM): The new NYC rule on hotel fees could extend to reservations made from the city anywhere in the US, potentially ending resort fees. View on X
- @BrilliantBenN (Jan 22, 2026, 5:30 AM): NYC just banned hotel hidden fees; interview with Mayor Mamdani. View on X
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