NYC's Mamdani Bans Hidden Hotel Fees and Surprise Card Holds

New York City Mayor Zohran Mamdani has announced a major consumer protection rule, eliminating hidden hotel fees and unexpected credit card holds. The new regulation is set to take effect on February 21, 2026, and represents one of the most comprehensive local efforts to address transparent hotel pricing practices in the US.

The announcement comes just a week after Mamdani signed an executive order establishing a Citywide Junk Fee Task Force.

Hotels must show the full price upfront

Finalized by the Department of Consumer and Worker Protection (DCWP), the rule bans hotels from advertising room rates that exclude mandatory charges. Fees often labeled as resort, destination, or hospitality service fees must now be included in the advertised price whenever a rate is shown to New York consumers.

Hotels and booking platforms will be required to display the total cost of a stay clearly and upfront, rather than revealing additional charges later in the booking process.

The regulation applies not only to hotels located in New York City, but also to any hotel or online booking service that advertises prices to New Yorkers, even if the property itself is outside the city.

Surprise credit card holds are also restricted

Beyond room fees, the rule also targets unexpected credit card holds and deposits. These holds have historically been applied without clear advance disclosure of the amount or timing.

The new regulation explicitly addresses this practice, treating undisclosed holds as potentially deceptive under the city’s Consumer Protection Law if they are not prominently explained to customers before booking.

Clear pricing aims to restore trust in hotel bookings

For years, travelers have complained about advertised rates that appear low until mandatory fees are added at the final stages of checkout, sometimes after payment details are entered. These practices have made it difficult to compare prices across hotels and platforms.

By requiring full disclosure of all mandatory charges and card holds at the point of advertising, Mamdani aims to simplify booking, reduce frustration, and help travelers make informed decisions.

Photo by Kevin Snow on Unsplash