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Annual Hawaii Forecast with Asia-Pacific Outlook: Moderation Ahead as Business Cycle Matures

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Making Sense of Mandatory Resort Fees

Posted April 10, 2018 | Categories: UHERO Briefs, Hawaii's Economy, Mak, James

More than 1,000 hotels in the U.S. require guests to pay a mandatory resort fee, stated as a fixed dollar amount per room per night of occupancy, in addition to the base room rate. According to the American Hotel & Lodging Association (AHLA), approximately 7% of U.S. hotels charge resort fees. Resort fees cover such services as parking, phone calls, in-room Wifi, daily bottled water, coffee maker, health club access, and so on. Included services vary from hotel to hotel. Hotels still include some services such as housekeeping, basic toiletries and television in their base room rate. By making the resort fee mandatory, a resort-fee hotel is bundling some services with the room but is disclosing a separate fee. The average resort fee in the U.S. is around $21. Resort fees generate about $2.7 billion in annual revenues to domestic hotels. The number of resort fee hotels and resort fee revenues in the U.S. are increasing rapidly.

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