Resort marketing lawsuits are the wave of government and private cases accusing hotel chains and booking platforms of advertising one room rate and then adding mandatory “resort,” “destination,” or “amenity” fees at checkout. Since 2019, attorneys general in the District of Columbia, Texas, Pennsylvania, Nebraska, and other states have sued or settled with Marriott, Hilton, Hyatt, Omni, Choice Hotels, and Booking Holdings over the practice regulators call “drip pricing.” The Federal Trade Commission’s Rule on Unfair or Deceptive Fees took effect on May 12, 2025, and now requires lodging advertisers nationwide to show the full price up front.1Federal Trade Commission. Rule on Unfair or Deceptive Fees – Frequently Asked Questions
What the Lawsuits Are Really About
The common complaint across these cases is simple. A hotel or booking site advertises a nightly rate. The consumer picks the room, moves through the booking flow, and only then sees extra mandatory charges tacked on. Those charges carry different labels at different brands: resort fees, destination fees, amenity fees, urban fees, service charges. The guest cannot opt out of any of them.
Regulators and plaintiffs argue this prevents honest price comparison, rewards deceptive advertisers over transparent ones, and violates state consumer protection statutes. The fees are not small. In the Travelers United class action against Hilton, the complaint alleges hidden resort and destination fees can add more than $35 per day to an advertised rate and have generated hundreds of millions of dollars in additional revenue.2ClassAction.org. Hilton Hit With Class Action Over Allegedly Unlawful Hidden Hotel Room Fees
State Attorney General Cases
State AGs have been the most active enforcers, using their consumer protection statutes to sue hotel chains and third-party booking platforms.
District of Columbia v. Marriott
On July 9, 2019, then-D.C. Attorney General Karl Racine sued Marriott International, alleging the company hid the true price of hotel rooms by leaving mandatory resort, amenity, and destination fees out of its advertised rates. The complaint accused Marriott of violating the District’s Consumer Protection Procedures Act and said the pricing was designed to make rooms look cheaper than they were.3DC Office of the Attorney General. AG Racine Sues Marriott for Charging Deceptive Resort Fees
Pennsylvania’s Voluntary Compliance Agreements
Pennsylvania went a different route. In November 2021, Attorney General Josh Shapiro’s office filed an Assurance of Voluntary Compliance with Marriott in Allegheny County Court of Common Pleas. Marriott committed to prominently displaying the total price of a stay, including all mandatory fees, on the first page of its booking website. The all-in price had to be the most prominent figure, and search results sorted by price had to use the total. Marriott was given nine months to roll the changes out nationwide and did not admit wrongdoing.4Pennsylvania Office of Attorney General. Marriott Assurance of Voluntary Compliance5Travel Weekly. Marriott Settles Resort Fee Lawsuit
Pennsylvania, joined by Oregon and Colorado, reached parallel agreements with Choice Hotels International in September 2023 and with Omni Hotels Management Corp. in November 2023, each requiring clear disclosure of mandatory fees and prominent display of the total price.6Pennsylvania Office of Attorney General. Comment of 19 State AGs on Unfair or Deceptive Fees Trade Regulation Rule
Texas v. Hyatt
Texas Attorney General Ken Paxton sued Hyatt Corporation in 2023 under the Texas Deceptive Trade Practices Act, alleging the chain advertised room rates it never intended to honor and buried mandatory charges behind drop-down menus.7Hotel-Online. Major Hotel Chain Will Pay Texas Over $1M to Settle Suit Over Hidden Fees
On December 3, 2025, State District Judge Dib Waldrip in Comal County signed an agreed final judgment. Hyatt agreed to pay roughly $1.25 million, with $400,000 going to the Attorney General’s office and $850,000 directed to the Supreme Court Judicial Fund and general revenue. A permanent injunction bars Hyatt from misrepresenting room rates, mandatory fees, or pricing. Hyatt denied violating state law.8San Antonio Express-News. Texas Hyatt Ken Paxton Settlement9Texas Attorney General. Attorney General Ken Paxton Secures $1.25 Million Settlement With Hyatt Hotels
Texas v. Booking Holdings
In August 2025, Paxton announced a $9.5 million settlement with Booking Holdings, the parent of Booking.com, Priceline.com, and Kayak.com. The state alleged the company drew consumers in with artificially low rates by lumping mandatory hotel fees together with government taxes under a single “Taxes and Fees” line that appeared only at checkout. Booking Holdings agreed to display resort fees and other mandatory charges upfront in the advertised price and did not admit wrongdoing.10Business Travel News. Booking Holdings Agrees to $9.5M Settlement in Texas Junk Fees Lawsuit11Texas Attorney General. Attorney General Ken Paxton Secures Historic $9.5 Million Settlement With Booking
Nebraska’s Settlements
Nebraska Attorney General Mike Hilgers announced a run of settlements in fall 2025 with Hilton, Marriott, Omni, and Choice Hotels. The Hilton settlement included $300,000 for attorney’s fees and costs and resolved a case the state originally filed in 2019 in Lancaster County District Court. All four chains agreed to prominently disclose the total price on the first page of their booking sites, sort search results by total price, and explain what amenities their mandatory fees cover. Dollar amounts for the Marriott, Omni, and Choice settlements were not publicly detailed.12Nebraska Attorney General. Attorney General Mike Hilgers Announces Series of Settlements Aimed at Preventing Hidden Hotel Fees
Consumer Class Actions
Guests have also sued directly. In Soule v. Hilton Worldwide, Inc., filed in the U.S. District Court for the District of Hawaii, the plaintiff alleged Hilton committed unfair and deceptive practices under Hawaii law by failing to adequately disclose resort fees at three Hawaiian properties. Judge Alan C. Kay approved a settlement in 2015 valued at $561,000 in vouchers, with class members receiving a $20 credit per night of their covered stay. The class covered U.S. residents who booked pre-paid rate plans at those properties between October 2009 and May 2013.13TZ Legal. Resort Fees Class Action Settlement
In September 2023, the advocacy group Travelers United filed a class action against Hilton Worldwide Holdings in the District of Columbia, alleging the chain’s drip-pricing practices violate the D.C. Consumer Protection Procedures Act. Travelers United seeks to represent a nationwide class of consumers who paid such fees at Hilton properties. The case remained active as of early 2026.2ClassAction.org. Hilton Hit With Class Action Over Allegedly Unlawful Hidden Hotel Room Fees
The FTC Rule That Changed the Landscape
On December 17, 2024, the Federal Trade Commission approved its Rule on Unfair or Deceptive Fees (16 C.F.R. Part 464) by a 4–1 vote. The rule took effect on May 12, 2025 and applies to short-term lodging and live-event ticketing.14Federal Trade Commission. Federal Trade Commission Announces Rule Banning Junk Ticket, Hotel Fees
The rule does not ban resort fees. It requires any business advertising a hotel room, vacation rental, or similar lodging to display a “total price” that includes all mandatory fees, and to show that total more prominently than any other pricing figure. Mandatory charges such as resort fees, cleaning fees, and unavoidable service charges must be folded into the advertised total. Only government taxes, shipping charges, and genuinely optional add-ons may be excluded, and even those must be clearly disclosed before purchase. Misrepresenting the nature or amount of any fee is itself a violation. Enforcement can bring compliance orders, consumer refunds, and civil penalties.1Federal Trade Commission. Rule on Unfair or Deceptive Fees – Frequently Asked Questions
The rule reaches hotel chains, independent properties, third-party booking platforms, and travel agents. It does not preempt stronger state protections, so a business operating in a state with tougher disclosure rules has to meet both standards.1Federal Trade Commission. Rule on Unfair or Deceptive Fees – Frequently Asked Questions
Pending Federal Legislation
Congress has moved in parallel. The Hotel Fees Transparency Act of 2025 was introduced in both chambers of the 119th Congress. Senators Amy Klobuchar and Jerry Moran sponsored S. 314, which passed the Senate Commerce Committee unanimously on February 5, 2025.15Senator Amy Klobuchar. Klobuchar, Moran Bipartisan Legislation to Address Hidden Hotel Fees Passes Unanimously Out of Commerce Committee The House version, H.R. 1479, passed the full House on April 28, 2025.16Congresswoman Young Kim. Rep. Young Kim Bill to Promote Cost Transparency Passes House As of mid-2026, the Senate bill has not received a full floor vote.17Congress.gov. S.314 – Hotel Fees Transparency Act of 2025
The bill would require any entity advertising hotel rooms or short-term rentals to display a “total services price,” defined as the base rate plus all service fees, whenever a price is shown. Government taxes and assessments would be disclosed separately before final purchase. The FTC and state attorneys general would share enforcement. The American Hotel & Lodging Association, Consumer Reports, and the National Consumers League have endorsed the measure.15Senator Amy Klobuchar. Klobuchar, Moran Bipartisan Legislation to Address Hidden Hotel Fees Passes Unanimously Out of Commerce Committee
What Hotels Must Now Show You
Taken together, the state settlements and the FTC rule produce a consistent set of booking-page requirements for lodging advertisers. The all-in price, including every mandatory fee, has to be the most prominently displayed figure. Search results sorted by price have to rank by that total. Government taxes can be broken out separately but must still be disclosed before you complete the booking. Optional add-ons can be offered on top of the total but cannot be hidden as mandatory charges.
If a booking page shows you a low headline rate and then produces a materially higher total at checkout driven by a “resort fee” or similarly labeled mandatory charge, that is the exact conduct these lawsuits and the FTC rule target. Complaints can be filed with the FTC and with your state attorney general’s consumer protection division, both of which have been actively building cases in this area.