Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities. How angry are consumers? Jim leads JMBM’s Global Hospitality Group® — a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. When aggressive litigation is the best strategy, he is a vigorous and effective advocate for his clients. This post contains references to products from one or more of our advertisers. Go to www.HotelLawBlog.com for current information in these areas. David has significant experience in the vacation ownership arena, focusing on the formation and registration of condominiums, timeshares and fractional interest regimes. Wednesday night, Rep. Eddie Bernice Johnson (D-TX) and Rep. Jeff Fortenberry (R-NE) introduced bipartisan legislation named the “Hotel Advertising Transparency Act of 2019,” aimed at making the practice of charging resort fees illegal. For more information, please contact Marty Orlick at 415.984.9667 or morlick@jmbm.com. 4489, the Hotel Advertising Transparency Act of 2019. That was our intention with this video as well. Reach him at 310.785.5387 or tgemoets@jmbm.com. Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Marriott is also currently being sued by the attorney general of Washington, D.C., over resort fees, and Hilton is being sued by the attorney general of Nebraska over what he alleges are “deceptive and misleading pricing practices and failure to disclose fees.”, “This summer, we witnessed a record number of Americans take the opportunity to travel. For more information, contact Robert Kaplan at 415.984.9673 or rkaplan@jmbm.com. David Sudeck is a Partner in JMBM's Real Estate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. Oh, and that’s another thing – it’s mainly in the U.S. where resort fees are a thing. We may receive compensation when you click on links to those products. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. Ben represented the owner of a partially completed multi-billion dollar resort property in the restructuring of its finances and has represented lenders to hotels and casinos. A resort fee lawsuit may be an option for consumers who reserved a room at a U.S. hotel or resort in the past two years and were charged “resort fees” on top of their nightly room rate. This decision placed hotels apart from airlines and travel agents, who are both required to include all incremental fees in their final advertised prices. His hospitality experience includes hotels, condo-hotels and mixed-use projects. H.R. 4489, the Hotel Advertising Transparency Act of 2019. and select "ADA." Their goal is to make resort fees illegal, according to a report by The Points Guy. Marty is a member of the American College of Real Estate Lawyers (ACREL) and a frequent speaker on the ADA and other topics. He has obtained two of California's annual 50 largest jury verdicts in the same year. On September 25, 2019, a bill was introduced in the House of Representatives that would expressly make hotel resort fees and other mandatory charges illegal. While it’s unclear how far this bill will advance, frequent hotel guests are sure to cheer its introduction and hope it becomes law. However, the Location section asserts (also without reference) that "A handful of hotels in Canada have also recently taken up the practice." 4489 is entitled the Hotel Advertising Transparency Act of 2019. Please view our advertising policy page for more information. In response, the front desk may have the fee wiped or give you a comparable discount with the same … Jamie Ogden is a tax lawyer at Jeffer Mangels Butler & Mitchell LLP. Resort fees, which typically cover amenities that were previously included in the price of hotel rooms, such as the use of an exercise facility or business center, have been a long-standing irritant for hotel guests. Will H.R. “It is projected that in 2019, over three billion dollars in revenue alone will be collected from consumers due to these hidden fees. What are the legal and business considerations? The average resort fee in Hawaii is $27 per night with more than 100 island resorts charging additional fees (based on a study by Travel Hawaii). Now, federal lawmakers are taking action. A single consent decree, which concludes resort fees are unfair and deceptive, would give large hotel companies the excuse to permanently end the practice, even over the objections of owners. He negotiates hotel, spa and restaurant management agreements, and assists client in the development, acquisition, sale and leasing of hotels, golf courses and restaurants. He has been quoted as an expert on noncompete agreements in the Wall Street Journal. It expressly authorizes the Federal Trade Commission (FTC) to enforce the legislation and also permits State Attorneys General to do so as well, coordinating with the FTC. Unfortunately, this also meant a record number of travelers were subjected to deceptive hidden fees charged by hotels, motels, and other places of accommodation,” said Congresswoman Johnson. Who’s your hotel lawyer? There is no cost for an initial discussion. Numerous bodies have authority on this issue in the United States, including the U.S. Congress , state legislatures, the Federal Trade Commission , and the National Association of Attorneys General . This site does not include all credit card companies or all available credit card offers. For example, one myth is that because a hotel charges a “resort” fee, the resort fee hotel provides better service—where the fee is typically not related at all to the quality of service, and resort fee hotels have received serious service complaints as have other hotels. Robert Kaplan is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. We found one Las Vegas hotel charging a room rate of $26 with a "resort fee" of $34. But the fees – which typically range from $20 to $40 a night – are mandatory for all guests whether they use any of those services or not. Just this month, a class-action lawsuit was filed in the U.S. District Court for the Southern District of California against Marriott alleging that resort fees amounted to a drip pricing scheme. For more information, please contact Jeff Steiner at 310.201.3514 or jsteiner@jmbm.com. The latest breaking news, comment and features from The Independent. Click here to see the complete text of H.R. You might have been charged a resort fee—even if you weren’t staying at a resort. She represents owners and developers in land use, zoning, environmental, litigation and construction matters. Scott is a management labor lawyer with more than two decades of experience representing employers in all aspects of labor relations and employment law including union prevention, collective bargaining negotiations, defense of unfair labor practice charges before the NLRB, wrongful discharge litigation, individual and class action employment discrimination and wage-and-hour claims, sexual-harassment litigation, arbitrations, personnel policies, California wage and hour law, and employee discipline and discharge. The lender -- acting by and through GMAC Commercial Mortgage Corporation as special servicer -- was the holder of a $60 million loan secured by a Deed of Trust on the Clift Hotel. In others, it allows you to use the in-room safe or the coffee maker. The FTC issued a warning to 22 hotels in 2012, saying that surprising guests with hidden resort fees is deceptive and illegal. The average price of a resort fee in the U.S. is about $25. A registered Civil Engineer and Structural Engineer in California, and a former building official for the City of Los Angeles, Kevin brings unique experience and insight in Zoning and Building Code applications and Code Enforcement issues. In 2015, the Federal Trade Commission found that resort fees are not required to be included on advertised hotel rates. Jamie has extensive experience with foreign compliance matters, including each variation of the IRS amnesty programs. Jim Butler is recognized as one of the top hotel lawyers in the world. Don't mean to brag, but I just booked a … For your convenience, here are links to Resort Fee articles that will provide a fairly comprehensive understanding of the history and evolution to the current situation: Nebraska sues Hilton over hotel “Resort Fees”, Attorney General for DC sues Marriott International over hotel “Resort Fees”. In 2010, fees and surcharges pulled in $1.7 billion. In addition to his experience in private practice, Jamie also brings several years of service from both state and federal government. 4489 become law? Time to take a new look at Federal vs. State receiverships? On September 25, 2019, a bill was introduced in the House of Representatives that would expressly make hotel resort fees and other mandatory charges illegal. We understand the best defenses to consumer and government agency claims that Resort Fee practices constitute violations of state consumer protection actions, the Federal Trade Commission Act and other causes of action based on misrepresentation, consumer fraud, and unfair business practices. He assists clients with development, leasing and disposition, loan portfolio acquisitions, loan and debt restructure, workouts and real estate exchanges. The FTC takes aim at hotel Resort Fees — The FTC 2017 Report, National task force of 47 Attorneys General goes after hotel Resort Fees, How Resort Fees became an explosive $2.7 billion issue, How to avoid litigation on Resort Fees and other mandatory hotel charges. We advise hotel industry clients on litigation, compliance and risk mitigation strategies. 4489 is entitled the Hotel Advertising Transparency Act of 2019. Bob also advises hotel owners regarding telecommunications, software, internet, e-commerce, data processing and outsourcing agreements. He focuses his practice on business litigation including contracts, corporate and partnership disputes, and hospitality disputes and litigation. 1900 Avenue of the Stars
About 45 percent of hotels in resort locations, such as ski or beach destinations, charge resort fees, he says. Consumer advocacy group Travelers United has been leading the effort to get the bill introduced and supported in Congress. They’re illegal in a lot of other countries, but the U.S. has no laws that say hotels can or cannot charge them. The bill maintains that “advertising that does not reflect the true mandatory cost of a stay at a place of short term lodging is deceptive.”. Jamie’s experience includes all tax aspects with respect to the hospitality industry, including acquisitions and dispositions (including Section 1031 exchanges), financing and management agreements. *Bonus value is an estimated value calculated by TPG and not the card issuer. For more information, contact Mark at 949. If you would like some help to evaluate your situation and options, then call one of the members of our Resort Fee Litigation Advisory Group. Marta Fernandez is a partner in JMBM's Employment and Labor Department and a senior member of JMBM’s Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. The backlash has spawned a movement called Kill Resort Fees, organized by Washington, D.C., lawyer Lauren Wolfe, who contends that resort fees are deceptive and misleading, if not illegal. Robert Braun is a partner in JMBM's Corporate Department and a senior member of JMBM's Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. “Not only will this bill require upfront disclosure of all fees in the advertised price of a hotel room, but it will require the same for short-term rentals. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Wei Deng is General Counsel of Bosen American Capital, Inc. where in addition to his legal duties, he is responsible for sourcing, evaluating and proposing United States investment opportunities to the company. Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. Will hotels lose guests over resort fees? For more information, please contact Marta Fernandez at 310.201.3534 or at mfernandez@jmbm.com. ALL RIGHTS RESERVED. Jamie also works frequently with litigators on the tax aspects of litigation, judgments and settlements. For David's take on current issues in the timeshare arena, go to www.HotelLawBlog.com and click on the topic, "Timeshare." Ask the Hotel Lawyer™ is a quarterly column that I write for JMBM's Global Hospitality Advisor®. Direct Fax: (310) 712-8526
The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. He has wide-ranging trial experience in a variety of commercial disputes, including complex multi-party litigation and class actions. Please view our advertising policy page for more information. Views: 12068 . His clients include lenders, financial institutions, secured and unsecured creditors, distressed investment funds, businesses, receivers, special servicers and creditors' committees. Bennett Young is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. Friday 23 March 2018 17:40 34 comments Donald Trump ’s empire has brought the “resort fee” to the UK. He has tried numerous cases in state courts, federal courts, and in domestic and international arbitrations, and is a frequent author and speaker on trial practice. Participants: 1 2 Next. The rate you'd actually pay for the hotel for one night - with taxes - is $60.48. On the luxury side of things, the Fisher Island Club and Resort in Florida charges a $160.50 resort fee on top of a $1,052 room rate. Shouldn't hotel resort fees be made illegal? Posts: 36 . On September 25, 2019, a bill was introduced in the House of Representatives that would expressly make hotel resort fees and other mandatory charges illegal. As a management labor lawyer with more than 20 years of experience, Marta specializes in representing hospitality industry clients in all aspects of labor and employment including labor-management relations such as union prevention, collective bargaining for single as well as multi-employer bargaining units, neutrality agreements and defense of unfair labor practice charges before the NLRB. This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. • If you are a loyalty program member or frequent guest, make it clear that your continued patronage depends on being treated fairly. An experienced trial attorney, Scott has litigated a number of high-profile and complex cases involving a wide range of labor and employment law matters. For more information, contact Jamie at JOgden@jmbm.com or 310.201.3510. But these questions are being asked not only by attorneys general and legislators, they are on the lips of movers and shakers throughout the industry. Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. For more information about Resort Fee issues, including the latest updates, go to www.HotelLawBlog.com, scroll down the right-hand side under LEARN MORE ABOUT and click on “Resort Fee Litigation” where you will find all the articles on the subject. Marty specializes in representing hospitality industry clients in Americans With Disabilities Act (ADA) compliance and defense. Martin Orlick is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. This advice covers purchase, sale, development, financing, franchise, management, labor & employment, ADA, IP, and litigation. For more information, please contact Guy Maisnik at 310.201.3588 or mgm@jmbm.com. Sheri Bonstelle is a partner in JMBM's Government, Land Use, Environment and Energy Department, and a member of JMBM's Global Hospitality Group®. If you have a question you would like to submit to Ask the Hotel Lawyer™ please use the comments box below. To read Marta's articles, go to www.HotelLawBlog.com and select "Labor & Employment." H.R. His industry experience and his knowledge of the current capital markets -- where distressed assets often include complex deal structures and securitized loans -- allows him to bring creative and effective strategies to the table. I would like to subscribe to The Points Guy newsletters and special email promotions. He has represented hotel owners in the negotiation of several hundred management agreements, as well as spa management and franchise agreements. Jim Butler and the Global Hospitality Group®. He advises clients with respect to business formation, financing, mergers and acquisitions, venture capital financing, joint ventures and strategic partnerships. View our latest valuations here. She manages all aspects of the entitlement process, including representing clients before local and state agencies, commissions and councils. Traveler frustration with these fees has been growing, and several state attorney generals are fighting the added costs in the courts. Jeffrey Steiner is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,300 hospitality properties worth more than $104.7 billion. He also serves as lead tax counsel on M&A transactions, financing, internal corporate restructurings and deferred compensation matters. We understand the history and complexities of the Resort Fee litigation and we are advising industry stakeholders on these matters currently. These are stupid? ----- We believe that education is essential for every people. While your question may not be of sufficient general interest for the column, I will try to respond to you individually if you leave your contact information below. In the first six months of 2016, the fees have jumped 8 percent to an average of $19.52 a night. The hotel resort fee covers whatever the hotel wants it to cover. He advises individuals and businesses on a range of tax planning, tax controversy and estate planning matters. The $5 resort fee charged by the resort hotel to its guests is included in the room rates subject to tax. It is believed that a £20 nightly charge imposed on guests at the Trump Turnberry in … Travis Gemoets is an experienced trial attorney and represents management in all facets of labor and employment law, including wage/hour class actions, claims of discrimination, harassment, wrongful termination, trade secrets and unfair competition, union/management relations and workplace violence. Robert Company, Inc., AMRESCO Management Inc. and Midland Loan Servicer in their capacity as special servicers on troubled hotel loans in CMBS pools. Follow Follow Unfollow. This is the first legislation aimed at killing resort fees introduced in Congress since 2016. The mandatory resort fee is $29.12. How to get help with Resort Fee litigation issues. Bob represents lenders, special servicers, hard money lenders, community banks, national banking associations, distressed debt investors, and equity investors, positioning them for the best possible outcome by acting expeditiously to preserve value and increase cash flow. Consumers should be able to enjoy their vacation without being ripped off and financially burdened. This is the first legislation aimed at killing resort fees introduced in Congress since 2016. Wei was previously with JMBM, where he focused on transactional and litigation matters. Florida Attorney General Ashley Moody should follow … Bob represents owners in both transactional and operational issues. Advertisement. Bob represented the securitized lender in the Chapter 11 bankruptcy case filed by the Clift Hotel in San Francisco, and in the subsequent negotiations and successful sale of the loan to a third party. According to that report, consumers paid about $2 billion in resort fees in 2015, up 35 percent from the previous year. Hotel resort fees have become controversial in recent years. Mark S. Adams is an experienced trial lawyer and a member of JMBM's Global Hospitality Group® and Chinese Investment Group™. • If the resort fee was not made clear to you at the time of booking, ask that the fee be removed because it’s a dishonest and deceptive business practice. The summary asserts (without reference) that resort fees are illegal in Canada and Europe. It was introduced as bipartisan legislation by Representative Eddie Bernice Johnson (D-TX) and Representative Jeff Fortenberry (R-NE). We have provided counsel on Attorney General investigations. The Federal Trade Commission has warned 22 hotel operators that their online reservation sites may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.. Travel much, you two? The proposed class action lawsuit states that in 2013, “resort fees” collected by hotels were estimated at $2.1 billion, twice the amount of fees collected a decade ago. The District of Columbia sued Marriott International Inc on Tuesday, claiming that mandatory resort fees at its hotels are illegal and deceptive, the attorney general's office said. We’ve covered the 10 worst resort fees — and more importantly, how to avoid resort fees — but if there is any hope of resort fees becoming illegal, this bill has a long way to go. Hotel Finance − Hotel Debt & Hotel Equity, How to Terminate Hotel Management Agreements, Hotel Lawyer on PPP2 and the COVID Relief Bill’s changes to Paycheck Protection Program, ADA Defense Lawyer: The Court Dismisses ADA Lawsuit for Lack of Standing Proving Once Again These Cases Can Be Won, Hotel Lawyer Labor & Employment New Year Round-Up: What to Expect in 2021, ADA Website “Tester’s” Lawsuit Dismissed – Again. Los Angeles, CA 90067
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March 2018 17:40 34 comments Donald Trump ’ s mainly in the Wall Street.!