The Chicago Hotel Collection is a group of four properties engaged in what strikes me as perhaps the most egregious pricing I’ve ever seen.
Here’s the lowest rates that they offer, through a consolidator:
Pretty amazing stuff, right? Well look what this costs the consumer. Here’s the Magnificent Mile property, from $129:
Resort fees! If they’re really charging a $125 resort fee at these properties for each night of the stay then ties for the most expensive resort fee I have ever seen, anywhere. $15 room, $125 resort fee, that puts even Las Vegas to shame.
Here’s what ChatGPT had to say about them,
The previous high I knew about was $99 at the St. Regis Bahia Beach Resort which was then trumped by the Ritz-Carlton Reserve Dorado Beach at $125 per night.
Of course, since 17.4% in state and local taxes apply to the resort fee, it’s actually the most expensive resort fee I’ve ever seen (the Dorado Beach property would be taxed only ~ 9%).
But wait, it gets worse! They waive the resort fee for members of the military. But it appears like they then show a… higher base rate to compensate.
Speaking to one hotel distribution executive about these fees, he notes:
[T]he resort fees fed to OTAs and bedbanks [by these hotels] are either not disclosed or very well hidden in the T&Cs. …It’s usually a breakfast and drinks included rate where they lowball the base room rate and charge an exorbitant amount for the breakfast & drinks “add on”.On top of this, there is often a “booking fee” and/or a “processing fee”.
Under new FTC rules that went info effect in May (“Rule on Unfair or Deceptive Fees”), hotels have to include mandatory fees in the “total price” that is advertised or displayed up front. The total price must be “clear, conspicuous, and prominent” and must be displayed more prominently than any lower base price. When a hotel advertises “Room from $199/night + $39 resort fee,” the ad must instead show the total like “Room from $238/night incl. mandatory resort fee” so the customer sees the full unavoidable cost before selecting payment
Looks like Chicago is going the way of Vegas and Miami Beach.
Resort fees are nothing more than a bait-and-switch. Unfortunately, right now they are totally legal and there doesn’t seem to be the legislative appetite to change that.
Personally, I hate all of this “unbundling” and “mandatory fees” like resort fees, tips, surcharges and the like.
I stayed at one of these hotels in February. I think that my base rate was closer to 100 dollars, but I found the extra fee to be really annoying. I was able to get reimbursed for the stay so it was not an issue for me.
There were countless times for which I would walk by the front desk and see the staff arguing with customers.
The big benefit I got from the fee was a bag of soda and water each day. I made sure to get them every day out of principle, but the resort fee did not seem to bring a lot of value.
Ok, so, don’t stay there. Also, Gary, like usual, thanks for exposing bad practices. However, I suspect there is something going on here beyond a mere marketing gimmick (‘$15/night!’), like, maybe fees are taxed differently (or not, just speculating). Either way, it is a bait and switch, yet anyone who thinks they’re getting a $15/night hotel in 2025 America should know better.
Great Article!! Expose the thieving crooks. Fantastic Law on the books now.
This is fraud. Prosecute them.
This is NOT new! It has been going on for over a year. It’s pretty terrible. I had to modify my scripts not to alert on these properties.
Wow — that’s wild. Resort fees have always felt sneaky, but this takes it to another level. Charging $125+tax is already steep, but adjusting the base rate when the fee is waived for military members feels… questionable at best. It’s frustrating how these charges are becoming less about actual “resort amenities” and more about creative pricing strategies to make rates look cheaper than they really are. Transparency is long overdue in the hotel industry, and situations like this make the case even stronger.
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And Chitcago has a democracy tax. If you are not a minority you get an extra tax. They tie it to reparations because they still have slaves in Illinois.
@Gene — I respect you on here, and I also like the city and people of Chicago, so I had to look that one up, and I don’t think it’s the case, but, anyway, here’s what I found:
“Chicago Mayor Johnson signed an executive order in June 2024 to establish a Reparations Task Force to study proposals and make recommendations for addressing historical harms against Black Chicagoans. This is a study commission, not a program with an active, race-based tax or payout system.
The only municipality in Illinois with an active reparations program is the suburb of Evanston. It is funded by a 3% tax on the sale of recreational marijuana, not a general tax on non-minorities. The funds are used for housing assistance for Black residents who experienced specific historical housing discrimination in the city between 1919 and 1969.”
Seems totally different than your extreme suggestion, and honestly, those policies seem quite reasonable under the circumstances.
Resort Fees have become a major CRIME of this century !
Explain again why these fees don’t need to be regulated or simply eliminated?
The Chicago Way. May have something to do with the hotel tax which funds all kinds of add ons.
Fees in multiple industries have proliferated in part due to the fact that they are taxed at a lower rate than normal revenue. So, businesses are incentivized to put more of their revenue into fees. Change that part of the tax code and maybe we’ll see some sanity.
We stayed at the Pendry in Chicago last month. They quoted me $520 for two nights. My final charge was $702. Taxes and $42/night “destination charge” inflated the bill. I gave them a 1-Star on Yelp.
In September, we stayed at the Medea in Madrid. They quoted me Euro 260 for one night, they charged me Euro 260.
@WileyDog — Sounds like the EU has actual consumer protections. Sure would be nice if we did the same here.