Mayor Zohran Mamdani announced a new city rule on Wednesday that would prohibit hotel operators — those in New York City, as well as those outside the city that advertise to New Yorkers — from sneaking in extra charges often described as “destination fees” or “resort fees.”
“Life in our city does not need to be defined by hardship,” Mamdani said at a press conference at the Whitney Museum of Art in Lower Manhattan. “It can be defined by costs that come down, by businesses that give you what you paid for and by the city government that New Yorkers know is actually fighting for them.”
City officials said they received about 300 complaints last year related to hidden hotel fees or unexpected credit card holds, which the new rule would also require hotels to disclose.
The new rule is part of Mamdani’s ongoing crackdown on deceptive business practices. Earlier this month, he signed two executive orders targeting hidden or unexplained fees on purchases such as gym memberships, concert tickets, and magazine subscriptions.
The ban on “junk fees” would apply not only to hotels in New York City but to all hotels that advertise prices to New Yorkers, including businesses located outside the city. It requires hotel operators to disclose all mandatory fees, including credit card holds and deposits. California and Massachusetts have similar laws.
As an example of the tourists who would benefit, Mamdani cited those planning to visit the city this summer for the 2026 FIFA World Cup. The tristate area is expected to draw an estimated 1 million visitors.
The new rule was initially developed under the Adams administration and has already gone through a public hearing process. It is set to go into effect on Feb. 21.
Sam Levine, the commissioner of the Department of Consumer and Worker Protection, said the rule would be “the strongest hotel consumer protection anywhere in the country.” Levine previously served as a director in the Federal Trade Commission under Lina Khan, a prominent antitrust expert.
In a show of union support, Rich Maroko, the president of the Hotel and Gaming Trades Council, joined Mamdani at the press conference. The union represents 40,000 hotel workers.
Maroko praised the mayor for going after “corporate lawbreakers.”
His appearance was a reminder of how Mamdani will have to navigate relationships with powerful unions whose political interests may not always overlap with his own. Minutes before the press conference, Maroko announced his union’s backing of Brooklyn Borough President Antonio Reynoso for an open congressional seat in Brooklyn and Queens. Mamdani has endorsed Claire Valdez, a fellow democratic socialist, setting up a clash with members of the Democratic Party.
Wednesday’s announcement once again highlighted Mamdani’s decision to emphasize economic justice over economic development, a move that has raised concerns in the business community.
Mamdani said he is still interviewing candidates to head the Economic Development Corporation, a quasi-public agency responsible for growing the city’s business sector.
Asked about his vision on economic development, he argued that businesses following the rules should be heartened by his crackdown on deceptive pricing practices.
“Today is not just to hold bad actors accountable,” the mayor said. “It’s also to say to those who have been good actors that we see the work that you’re doing.”