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House Bill Would Force Hotels To Advertise Resorts Fees

A bill introduced in the U.S. House last week would force hotel companies to advertise resort fees and other add-ons along with the daily room rate. 

CDC Gaming Reports says the change could target resort operators on the Strip and in other gaming markets. The bill is in response to a hotel industry practice of adding resort fees to the room bill, which cover the use of incidentals, such as in-room Wi-Fi, room safes, and fitness centers. 

In Las Vegas, resort fees have become a source of concern for the tourism industry. Those added costs are driving up effective room rates on the Strip by anywhere from $15 to $45 dollars per night.

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A gaming analyst with Morgan Stanley said resort fees account for about 3 percent of revenue and 10 percent of cash flow for Caesars and MGM Resorts. 

Attorneys general in Washington D.C. and Nebraska are currently suing Hilton Hotels and Marriott International for not properly disclosing resort fees.