[Tom Otley]

We have had several threads about the high prices currently being charged by hotels, but I am also interested how the headline rate is then inflated by various resort fees, amenity fees and taxes.

Sometimes they are identified, but other times they are just – listed.

Take this one from the Motto by Hilton Hotel in Chelsea, New York

The top one is a combination of the New York State Sales Tax and the New York City Sales Tax.

“The City Sales Tax rate is 4.5%, NY State Sales and Use Tax is 4% and the Metropolitan Commuter Transportation District surcharge of 0.375% for a total Sales and Use Tax of 8.875 percent.”

The middle one is the NYC Hotel Room Occupancy Tax which is 5.875% of the room rate.

There is also a second part to the NYC Hotel Room Occupancy Tax which is (currently) $2.00 per day per room +  the New York State Hotel Unit Fee which is a further $1.50 per unit per day, making $3.50

https://www1.nyc.gov/site/finance/taxes/business-nys-sales-tax.page

[Tom Otley]

At least the Hilton breaks it out.

This is what you get at the Marriott

Doing the sums, it adds up (roughly):

8.88% = $58.49
5.875% = $38.72
$3.50
= $100.71

(Not sure where the other $2 comes from…)

[Tom Otley]

So finally, for the moment, I looked at 2 IHG properties – the first is a Holiday Inn

This tells you that the taxes aren’t included in the room rate (ie: are extra)

The $3.50 is the same as in the Motto by Hilton, so that sounds like $2 + $1.50.

And the $14.75% sounds like the two ones in the Motto added together( (8.88% + 5.88% = $14.76).

Then we have the Kimpton, which also charges an Amenity Fee – and justifies it.

Ironically, you have to pay tax on the Amenity fee

[AlanOrton1]

As a regular hotel user in NYC, since pre-Covid many hotels have started adding amenity fees. Essentially the same as hotels in Florida started doing around 10+ years ago with ‘resort’ fees.
Pretty ludicrous as I don’t think I’ve ever taken advantage, as a business user, of such items included in said amenity fee – like a discount to go up the Empire State Building.
Some of the amenities would generally be given free for low to mid loyalty tier guests anyhow, like a bottle of water or free internet.
Some chains (well Hyatt at least) waive these fees for their top tier members.
Otherwise it’s a growing trend and only likely to migrate outwards from Florida, NYC etc.

[Tom Otley]

Yes, although I’ve been told that in the case of amenity fees, you can refuse to pay them (I haven’t tried yet).

I stayed at the Moxy Chelsea last week and that has an amenity fee. I think it must be for use of the fitness centre, though I am going to check that…

Hotel review: Moxy Chelsea, New York

[DannyBoy]

The resort/City Fee is an absolute nuisance and usually puts me off from booking trips to the US. I just wonder how long before the UK and the rest of the world catches on and feels it’s mandatory in the guest’s interest.

I have found some great websites that give some strong background to the scam and how to avoid them and also those properties who don’t charge them.

https://www.resortfeechecker.com/hotel_resort_fees_new_york_ny.html

https://britonthemove.com/resort-fees/

http://killresortfees.com/newyorkcity

In the past I find Vegas is a great place to either have them dropped and contested as the hotel will upgrade your room or give free promos at no extra cost.

1 user thanked author for this post.

cwoodward

[AlanOrton1]

A way to escape the amenity fee (not so much all the other NY taxes, fees etc) was to book a Residence Inn, Hampton Inn, Hyatt Place etc.
I’m not sure if they have changed too, but they didn’t use to charge this fee and there would often be a basic free breakfast etc.
Not a full service hotel experience though.

NYC hotel pricing tends to vary, very much per time of the year:
Jan-March – relatively inexpensive
Labour Day to mid Nov – often very expensive by comparison. Sometimes I’d pay 3x what I would pay in Jan / Feb.

[ASK1945]

Tom, a “resort fee” has been a scam for many years in Florida (at least).

I first encountered it 6 years ago in Miami Beach and it wasn’t advertised in advance. Only the various taxes were advertised with the room fees. I recall asking what this resort fee was for and being told it was for the amenities such as internet. It was mandatory. Although the advertising said they had internet, it didn’t say it was free, at that time.

I have looked at a receipt I still have from July 2016 for a booking through an Expedia company, which shows (per night):
Sales Tax 7% – room
City tax 4%
County tax 3%
Total mandatory taxes: 14% (all shown as one amount in GBP at the time of booking)

Resort fee $19.94
Resort fee Sales tax 7%
Resort fee City tax 4%
Resort fee County tax 3%
Total for resort fee including tax $22.76 (no amount shown on the booking)

Valet parking $35 (there was no free or self-parking). The cost of the valet parking was shown at the time of booking, but it didn’t specify the total amount.
Sales tax on valet parking 7%
Total $37.45

For a room with a basic charge of $329 per night, the total cost without breakfast or any other meals or drinks was $435, an uplift of 32% from the headline price advertised.

I factored in this type of uplift before choosing hotels subsequently.

I have checked the same hotel using the same website today and note that the cost of the taxes and resort fee is now shown before booking.

[Nelsonsavinghub]

Hotel Resort Fees and Amenity Fees: Some hotels in New York charge extra daily fees for services like Wi-Fi, fitness centers, and pools. Make sure to check what’s included and how much these fees are.

Taxes: When staying in a New York hotel, you’ll likely pay various taxes, including a state hotel occupancy tax, state and city sales taxes, and sometimes local occupancy taxes. These taxes are added to your bill.

Remember, fees and taxes can vary, so always check with the hotel directly to understand the costs before booking.

[cwoodward]

Old thread – why here ?

However
I would immediately walk…in the very unlikely event that I had booked in the first place.

[Author]

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