D.C. Attorney General Sues Marriott Over Hidden Hotel Fees

Brian Frosh Karl Racine
Photo credit: Bisnow/Jon Banister
Maryland Ag Brian Frosh And D.c. Ag Karl Racine At A 2017 Press Conference

Marriott International is coming under fire for adding fees on top of the price it advertises for hotel rooms.

D.C. Attorney General Karl Racine Tuesday filed a lawsuit against the Bethesda, Maryland-based company, alleging Marriott has violated the District's consumer protection laws with misleading and deceptive pricing practices.

The lawsuit says Marriott charges fees beyond the advertised price as high as $95 per night that do not appear until a customer is finalizing the booking process. It says it calls them "resort fees," "amenity fees" or "destination fees" and often lumps them in with taxes to make them appear as if they are imposed by the government rather than an additional charge from the hotel operator.

By doing this, the lawsuit says Marriott increases its profits without having to raise the price advertised for rooms. Marriott declined to comment.

Racine said the lawsuit seeks monetary relief for tens of thousands of D.C. hotel customers, and he hopes to force Marriott to increase the transparency of its prices.

"Marriott reaped hundreds of millions of dollars in profit by deceiving consumers about the true price of its hotel rooms," Racine said in a release. "Bait-and-switch advertising and deceptive pricing practices are illegal."

Consumer advocacy groups have spoken out for years about hidden hotel fees, arguing that they represent false advertising. The lawsuit says the problem has worsened as consumers increasingly use online booking sites to compare hotel prices, making the industry more competitive.

The largest hotel chain in the world, Marriott operates over 7,000 properties in 131 countries across its 30 separate brands. The company operates at least 29 hotels in D.C., the lawsuit said.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Equinix Ramps Up Spending Plans Amid Faster-Than-Expected AI Shift

Cortland, Pulte, INVH, Walker & Dunlop Execs Talk Changing Demographics, AI