Philadelphia Hyatt Caught Charging Illegal Hidden Fees Without Disclosing Them To Guests

Resort fees are a scam. By taking part of the mandatory cost of a hotel room out of the room rate, the hotel looks less expensive than it really is. And even if the resort fee is disclosed prior to completing the reservation, it still makes the initial rate – the rate you’re comparing against other hotels in a search – seem less expensive.

The only reasons to have resort fees are to scam guests and to cheat taxing authorities or travel agencies that take a percentage of the room rate, but not a percentage of the total cost of the room. In other words, resort fees are literally fraud – both in intention and effect.


Credit: The Bellevue Hotel

“Destination fees” are maybe worse because every hotel is in a destination for people traveling there, the hotels aren’t resorts and rarely have the benefits that hotels pretend are ‘paid for’ with this fee (like bathroom mirror, television, alarm clock and ironing board).

I don’t usually worry about resort fees with Hyatt because,

  • No resort fees on free night awards. Hilton and Hyatt don’t impose these charges on ostensibly ‘free’ stays, like Marriott and IHG do.

  • No resort fees on paid stays for Globalists. This one is nice as well, plus since resort fee waivers are offered to everyone on points redemptions Globalists get free parking as well when redeeming points.

But when a Hyatt property charges a destination fee that is not even disclosed during the booking process that’s especially egregious, and clearly illegal.


Credit: The Bellevue Hotel

Hyatt’s The Bellevue Hotel in Philadelphia doesn’t show a resort or destination fee when booking directly on its website.

However they are adding this charge to guest folios on property anyway. In fact, a reader shares that it’s even worse than this – it wasn’t even disclosed until checkout!

[I]t was not mentioned during check-in. So there was no list of fake amenities that it ostensibly covered – it just wasn’t discussed. The first time it was disclosed was on the attached invoice this morning.

If you don’t check your bill prior to check-out, you wouldn’t even know you were being charged more than the price you were quoted for the room.

The guest even liked the hotel, but this fee ruined it.

That’s said, they did ann extraordinary job in the renovation of the hotel. The rooms are great, they restored it to its former beauty and the adjacent sporting club has returned as one of the best hotel related fitness facilities I’ve ever experienced. The hotel is great, but the [redacted] fees are not.

The Federal Trade Commission now basically says the practice is illegal but will a Trump-influenced FTC enforce rules adopted by Lina Khan et al on their way out the door?

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Hey Woofie when you shaved your head bald did you take your IQ off along with your hair? Marriott and Hyatt are the two most relevant hotel chains to any traveler reading this website. Marriott because they are everywhere and Hyatt because their points are worth the most and their hotels, broadly, are the best. A new build Hyatt Place blows a Fairfield Inn out of the water. A Park Hyatt is understated luxury while St Regis or the Ritz Carlton are gaudy. You get the idea. Now go take your meds or you are at risk of urinary retention

  2. I stayed at the New York New York on Hyatt points and they refused to waive the resort fee which allows you to walk through smoke filled rooms to get to your room. I called Hyaat and they stated New York was in their right to charge the fee anyway.

  3. Hey Eileen, bless your heart sweetie babe. Have had a chance to purchase your Trump sexual paraph

  4. Just stayed there last week on points. Didn’t have time to get breakfast, but the Bellvue sports club across the street was exceptional. That alone makes the hotel worth it for me.

  5. At the risk of disturbing the unhinged commenter named @Eileen, I’m with @Woofie in asking: “Why are these stories consistently about Marriott or Hyatt” ? As a Hilton loyalist, I’ll be first to agree that their meager reward program is on the same level as Delta’s SkyPesos, that their Elite Rewards tiers can require annual stay volume on the order of Tom Hanks Castaway, and that their inventory of premier resort properties is marginally better than Motel 6. Beside all of that, I find that their local hotel teams are friendly and pleasant, and in the event of trouble, their corporate team is quick with an apology and reconciliation. In over 50 years of travel, I’ve never had an ethics issue with Hilton, which is saying a lot in that business.

  6. I lost over 110,000 points in the Hyatt Gold Passport program when they changed over points schemes in about 2005. Never have stayed in a Hyatt since.

  7. Absolute theft, you are correct, in tone and content, and as you say, by design and effect.

    Pennsylvania Attorney General should be looking into this.

  8. If I owned the hotel I would be adding old sort of fees and ported disclose them, keep half for myself and give the other half to the preside nt. There’s no better way to make money, and there’s no way that under de-regulation anybody will do about them, especially as a supporter.

    Gary, you’ve been screwed. And please stop posting this stuff, it’s non-news (like, what choice does one have??)

  9. A shame about this. I like the hotel a lot. It has tons of character in that faded grandeur way. The staff is super nice and helpful and the rooms are nice. Breakfast is solid and it’s a pleasant walk to all kinds of fun and interesting places.

  10. @Woofie @Eileen @TexasTJ

    If you want to ‘roast’ Hilton, IHG, or anyone else, you’re always welcome to add your ‘two cents’ in the comments. Gary doesn’t moderate here much at all. You can be as ‘colorful’ as you want.

    That said, I appreciate whenever someone respectable sheds light on a bad practice in this industry so that the rest of us can avoid it. Like, I trust Gary more than a random TripAdvisor or Yelp review.

  11. As s Globalist, I have never paid a Destination Fee including at The Bellevue. Philadelphia Hyatts are pretty lacking but I had great pancakes at The Bellevue.

  12. Too bad. It wasn’t that long ago that these fees didn’t exist, What a shame on them at that location. Other Hyatt’s don’t do it. Yet…

  13. @ Texas TJ- I certainly hope you are correct. Stayed at the Hilton Garden Inn Monday night, arriving at the property @ midnight with a prepaid reservation. Lobby under renovations, check in was at a folding card table. Agent did not get up from seat, dressed in sweats. Went to room, found A/C unit had no cover, TV not working, no trash can in unit. Went back down to lobby, asked for a different room and told none available. Never offered a refund and chance to go one of several nearby properties. Was charged $25 for “incidentals” and today noticed a charge of $18.32, no explanation.
    In the morning, spoke with the maintenance manager who told me that rooms were being renovated, my room 210 was used as a storage area and TV obviously damaged and with no A/C cover should not have been rented. Reached out to hotel manager, no response. Now on to corporate.

  14. I just had this week at the Hotel Nyack which is a Hyatt property. They charged the card that I gave for the $100 deposit. Their excuse when confronted was that the destination fee is incidental. Still torn about disputing the charge.

  15. I had over 200,000 points with IHG.Not a lot but I was trying to be loyal. I had a terrible experience with the Holiday Inn Kensington Station in London. I tried 4 times to get a remedy and eventually asked for the manager at check out. “He’s busy.” Aren’t they all?? I would have waited until hell froze over but my taxi to Heathrow was waiting. Numerous polite business letters were sent to corporate in Windsor and to North America in Atlanta but no response…ever. My TripAdvisor one star review did get a response…LONG AFTER I left. I did get my company to withdraw their contract with that hotel. Buh bye! I transferred all of my points with IHG into my airline of choice points…at a loss but. I also destroyed my branded credit card and mailed it back.

  16. The main reason for Resort/Destination Fees was driven by the owners of each individual hotel/resort. Since hotel companies have gone “asset light” years ago they no longer own any of their hotels (Hilton, Hyatt, Marriott, etc.) so they basically have become brands, management companies for the owners of the physical real estate. Hotel companies haven’t given two fcks about their guests for years their only concern is for hotel owners.

    The hotel owners get 100% of all the resort/ destination fees charged. None go to the brand/management companies.

    Between the hotel companies, the owners, the franchise operators and the hotel unions nobody cares about the guests.

    Where is the hospitality? Where are the true hoteliers???

    It’s shocking to see an entire industry going up in flames because of greed and a could care less attitude towards employees and guests.

  17. I’m in just about all the hotel loyalty programs but over the years have narrowed it down to 5 that I use, Hyatt, Hilton, Marriott, IHG and Choice. The only bad experiences I’ve had have been at Hiltons although I get annoyed that IHG tends to reject points stays when cash is available. After 2 bad experiences in a row at Hiltons, I stopped using them for years. But over the years I’ve started rethinking my attitude and now I’m reluctant to blame a brand because of a bad manager. When I read an article like this, I like to email that hotel asking if it’s really true that they charge for ____, just to let them know that the word is out and of course never stay there.

  18. I stayed at this hotel with a FNC recently and was disappointed with the experience at the front desk. At check in there was the usual “is it possible to be upgraded to a standard suite as a globalist since there is availability” and after arguing I politely caved and took the standard room I was assigned.

    At checkout there were no fees on the folio, however later that day I was charged for tip breakfast even though “globalist” was clearly written on the tip line. Came away from the hotel with a bad taste in my mouth. The hard product (especially breakfast) is lovely however.

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