New York City Adopts New Hotel Fee Disclosure Rules – Effective February 21, 2026

Following the Federal Trade Commission’s final "junk fee" rule issued in January 2025, the New York City Department of Consumer and Worker Protection ("DCWP") has adopted a final rule that significantly changes how hotel pricing must be disclosed to consumers. Modeled largely on the FTC rule, New York City’s regulation is intended to eliminate hidden fees and ensure that consumers see the true total cost of a hotel stay before booking.

The rule takes effect on February 21, 2026 and will apply broadly to hotel owners, operators and booking platforms.

Who is Covered

The rule applies to any person or entity that offers, displays, or advertises:

1. A hotel stay in New York City, regardless of where the advertiser is located; and
2. A hotel stay to a New York City consumer, even if the stay is outside New York City.

This expansive scope is designed to capture not only hotels, but also third-party booking platforms, online travel agencies and other intermediaries marketing rooms to New York City consumers.

Key Pricing Disclosure Requirements

The rule makes it a deceptive trade practice to advertise or display a hotel price without clearly and conspicuously disclosing the total price of the stay, inclusive of all mandatory fees, excluding only government-imposed taxes and fees. Covered fees include, among others, destination fees, resort fees and mandatory service or hospitality fees.

Required Disclosures Before Booking

Before a consumer consents to pay, advertisers must clearly disclose:

• The nature, purpose, and amount of any excluded fee or charge, and the good or service for which it is imposed;
• The final amount the consumer must pay, which must be displayed as prominently as (or more prominently than) the advertised total price; and
• The hotel’s general policy on deposits or credit/debit card holds, including:
  • The standard amount of such deposits or holds;
  • The circumstances under which a hotel may retain part or all of a deposit or hold; and
  • The approximate timeframe for release or refund.

Importantly, these disclosures must be provided from the moment a consumer can reserve a room through checkout, even if no deposit is required to secure the reservation.

Enforcement & Penalties

Violations carry meaningful civil penalties:

• $525 for a first violation
• $1,050 for a second violation
• $3,500 for third and subsequent violations

Equivalent default penalties may apply if citations go unanswered. The City has also created a Citywide Junk Fee Task Force, signaling an intent to actively enforce compliance.

Industry Response & Legislative Context

While consumer advocacy groups supported the rule, hotel industry representatives raised concerns about operational challenges, including managing disclosures across different reservation types, franchised properties and third-party booking systems. Requests to narrow the rule’s application to New York City consumers booking out-of-city stays and to extend the implementation timeline were not adopted in the final rule.

What This Means for Hotel Owners & Operators

Hotel owners and operators should begin preparing now. Compliance will likely require:

• Reviewing and updating booking flows and online interfaces
• Revising marketing materials and rate displays
• Coordinating disclosures across third-party distribution channels
• Updating internal policies regarding fees, deposits, and holds

Given the rule’s broad reach, out-of-state operators and platforms advertising to New York City, consumers should also assess their exposure.

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For more information on related Hospitality matters, please contact:

Yariv C. Ben-Ari at +1 212 592 1440 or [email protected]
Gita Gandhi at +1 212 592 6177 or [email protected]

© 2026 Herrick, Feinstein LLP. HERRICK® is a registered trademark of Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.