4489 is entitled the Hotel Advertising Transparency Act of 2019. In addition to his experience in private practice, Jamie also brings several years of service from both state and federal government. For more information, please contact Bob Braun at 310.785.5331 or rbraun@jmbm.com. 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. 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. 4489 is entitled the Hotel Advertising Transparency Act of 2019. He has been quoted as an expert on noncompete agreements in the Wall Street Journal. For more information, contact Ben Young at 415.984.9626 or byoung@jmbm.com. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered. While it’s unclear how far this bill will advance, frequent hotel guests are sure to cheer its introduction and hope it becomes law. 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. She defends employers in administrative and litigation claims, such as employee claims of sexual harassment and discrimination and counsels clients in preventative strategies such as executive training, arbitration enforcement, and policies and procedures. 7th Floor 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. For an explanation of our Advertising Policy, visit this page. ADA Defense Lawyer: ADA Lawsuits Are Defensible, Latest mid-November data on hotel owner’s viability – COVID, the vaccine, the economy, Hotel Lawyer Alert: California Consumer Privacy Act update. In others, it allows you to use the in-room safe or the coffee maker. Jamie Ogden is a tax lawyer at Jeffer Mangels Butler & Mitchell LLP. Answer 1 of 22: Are the occupancy taxes collected on resort fees in Vegas illegal? Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. Jim Butler is a founder of the JMBM law firm and chairman of its Real Estate Department. He has wide-ranging trial experience in a variety of commercial disputes, including complex multi-party litigation and class actions. Kevin represents developers and owners of hotels in a broad range of land use and zoning issues including entitlements, code enforcement, easements and parking requirements, as well as related Parcel Map and Tract Map subdivision issues. This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. Why don't they just increase the nightly fee. For example, 60,000 points are worth $750 toward travel. 1900 Avenue of the Stars To read Bob's articles, go to www.HotelLawBlog.com and select "Management Agreements." Please view our advertising policy page for more information. 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. The latest breaking news, comment and features from The Independent. A RED VENTURES COMPANY. 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. Don't mean to brag, but I just booked a … That would be followed by the same process in the Senate with a bill being introduced and voted on, and then a jointly-agreed upon bill being forwarded to — and signed into law — by the president. 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. There is no cost for an initial discussion. After adding the daily resort fee of $26.18 (including tax), that $211.65 room ended up costing $267.38 — that’s a sizable jump. For more information, please contact Sheri Bonstelle at 310.712.6847 or SBonstelle@jmbm.com. For David's take on current issues in the timeshare arena, go to www.HotelLawBlog.com and click on the topic, "Timeshare." The $5 resort fee charged by the resort hotel to its guests is included in the room rates subject to tax. Jim Butler, +1-310-201-3526 or jbutler@jmbm.com, Mark Adams, +1-949-623-7230 or mxa@jmbm.com. Jim Butler and the Global Hospitality Group®. If you have a question you would like to submit to Ask the Hotel Lawyer™ please use the comments box below. The FTC issued a warning to 22 hotels in 2012, saying that surprising guests with hidden resort fees is deceptive and illegal. Now, federal lawmakers are taking action. It is believed that a £20 nightly charge imposed on guests at the Trump Turnberry in … In some hotels, the resort fee gives you gym or pool access. If you’re not paying attention at booking and you’re planning to stay a week (not an unreasonable amount of time in Hawaii), you’re looking at more than $200 in additional fees. Robert Company, Inc., AMRESCO Management Inc. and Midland Loan Servicer in their capacity as special servicers on troubled hotel loans in CMBS pools. According to that report, consumers paid about $2 billion in resort fees in 2015, up 35 percent from the previous year. 1 2 Next . He has represented more than 500 businesses in ADA issues, many of them hotels and restaurants, as well as hotel mixed-use properties. Many of the credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. The resort fee is more than the advertised room rate. In 2010, fees and surcharges pulled in $1.7 billion. His clients include lenders, financial institutions, secured and unsecured creditors, distressed investment funds, businesses, receivers, special servicers and creditors' committees. What will be the outcome of the litigation filed against Hilton and Marriott? David has significant experience in the vacation ownership arena, focusing on the formation and registration of condominiums, timeshares and fractional interest regimes. The battle over resort fees is once again entering the halls of Congress. 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. 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. See. Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Posts: 36 . and select "ADA." Scott Brink is a senior member of JMBM's Global Hospitality Group® and a partner in JMBM's Labor & Employment Law Department. For more information, please contact Guy Maisnik at 310.201.3588 or mgm@jmbm.com. However, the Location section asserts (also without reference) that "A handful of hotels in Canada have also recently taken up the practice." For more information, contact Jamie at JOgden@jmbm.com or 310.201.3510. Her hotel experience includes handling the adaptive reuse of an historic office building as a luxury boutique hotel. This is the first legislation aimed at killing resort fees introduced in Congress since 2016. This advice covers purchase, sale, development, financing, franchise, management, labor & employment, ADA, IP, and litigation. Florida Attorney General Ashley Moody should follow … For more information, please contact Marty Orlick at 415.984.9667 or morlick@jmbm.com. In 2015, the Federal Trade Commission found that resort fees are not required to be included on advertised hotel rates. Hotel resort fees have become controversial in recent years. He focuses his practice on business litigation including contracts, corporate and partnership disputes, and hospitality disputes and litigation. Sheri Bonstelle is a partner in JMBM's Government, Land Use, Environment and Energy Department, and a member of JMBM's Global Hospitality Group®. Participants: 1 2 Next. • 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. What are the legal and business considerations? It was introduced as bipartisan legislation by Representative Eddie Bernice Johnson (D-TX) and Representative Jeff Fortenberry (R-NE). The hotel resort fee covers whatever the hotel wants it to cover. Reach him at 310.785.5387 or tgemoets@jmbm.com. 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. H.R. 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. Visit our hotel photo gallery to see some of the more than 3,900 properties around the globe that the hotel lawyers of the Global Hospitality Group® have been involved with, on behalf of our clients. 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. H.R. In the first six months of 2016, the fees have jumped 8 percent to an average of $19.52 a night. Currently, hotel resort fees can be viewed as illegal based on existing state consumer protection laws. The bill specifically goes on to state that: “No person with respect to whom the Federal Trade Commission is empowered under section 5(a)(2) of the Federal Trade Commission Act (15 I.S.C 45(a)(2)) may advertise in interstate commerce a rate for a place of short-term lodging that does not include all required fees, excluding taxes and fees imposed by a government.” The FTC (which has said resort fees are harmful to consumers) is empowered to enforce the rule; the legislation also empowers state attorneys general to bring civil actions on behalf of residents of the state in an appropriate district court of the United States. 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. Note: If you are a consumer with a Resort Fee issue, please do NOT contact us! Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. © 2021 THE POINTS GUY, LLC. Los Angeles, CA 90067 He has obtained two of California's annual 50 largest jury verdicts in the same year. That was our intention with this video as well. 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. Sheri also represents clients in a variety of land use and real estate litigation matters in state and federal courts, including cases arising under CEQA and other environmental laws. Will H.R. *Bonus value is an estimated value calculated by TPG and not the card issuer. 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. Advertisement. This bill would require that the prices advertised by hotels and online travel agencies must include all mandatory fees that will be charged to a consumer, excluding taxes.”. 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. It must first be passed by the House Committee on Energy and Commerce before it would go to a full House vote. Views: 12068 . Their goal is to make resort fees illegal, according to a report by The Points Guy. He represents both institutional lenders and borrowers in connection with construction and permanent lending, loan work outs and restructurings, real estate development, design and construction contracts, real estate acquisitions and sales, preparation and negotiation of commercial leases on behalf of landlords and tenants, joint venture transactions and hotel management agreements, purchases and sales and financings. The summary asserts (without reference) that resort fees are illegal in Canada and Europe. 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 . Total hotel fees and surcharges, including resort fees, were expected to rake in $2.9 billion last year, he says, up from $2.7 billion in 2017. ----- We believe that education is essential for every people. Direct Fax: (310) 712-8526 What’s the fuss? 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. 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. “It is projected that in 2019, over three billion dollars in revenue alone will be collected from consumers due to these hidden fees. He negotiates hotel, spa and restaurant management agreements, and assists client in the development, acquisition, sale and leasing of hotels, golf courses and restaurants. So until they’re told they can’t, they do. He assists clients with development, leasing and disposition, loan portfolio acquisitions, loan and debt restructure, workouts and real estate exchanges. Shouldn't hotel resort fees be made illegal? “This is a monumental bill for American travelers,” said Lauren Wolfe, counsel for Travelers United. Marty specializes in representing hospitality industry clients in Americans With Disabilities Act (ADA) compliance and defense. The whole House process starts with the Consumer Protection and Commerce Subcommittee, which will bring its findings on the bill to the full Energy and Commerce Committee for consideration. Marty is a member of the American College of Real Estate Lawyers (ACREL) and a frequent speaker on the ADA and other topics. For more information, contact Scott Brink at RSB@jmbm.com or 310.785.5365. This decision placed hotels apart from airlines and travel agents, who are both required to include all incremental fees in their final advertised prices. Direct: (310) 201-3526 For more information, please contact Kevin McDonnell at 310.201.3590 or kkm@jmbm.com. Jim Butler is recognized as one of the top hotel lawyers in the world. • If you are a loyalty program member or frequent guest, make it clear that your continued patronage depends on being treated fairly. View our latest valuations here. I would like to subscribe to The Points Guy newsletters and special email promotions. The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. Mark's trial wins have been covered by Forbes, Reuters, and other publications. How angry are consumers? How to get help with Resort Fee litigation issues. Mandatory COVID Vaccinations: Can/should hotels require employees to take the shots? According to the complaint, a “resort fee” is a mandatory per-night charge that hotel operators add on to the nightly advertised room rate. 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. 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.. He advises clients with respect to business formation, financing, mergers and acquisitions, venture capital financing, joint ventures and strategic partnerships. In response, the front desk may have the fee wiped or give you a comparable discount with the same … 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. “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. Contact Jim at +1-310.201-3526 or JButler@jmbm.com. Mark has taken or defended nearly 1,000 depositions throughout North America, Europe and the Middle East. We understand the history and complexities of the Resort Fee litigation and we are advising industry stakeholders on these matters currently. Consumers should be able to enjoy their vacation without being ripped off and financially burdened. 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. Consumer advocacy group Travelers United has been leading the effort to get the bill introduced and supported in Congress. Guy's deep and broad transactional practice includes complex real estate finance and venture capital transactions, including project finance, commercial finance, leveraged leasing and real estate acquisitions. ALL RIGHTS RESERVED. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This article currently contains contradictory information about Canada. 4489, the Hotel Advertising Transparency Act of 2019. For more information, please contact Marta Fernandez at 310.201.3534 or at mfernandez@jmbm.com. The mandatory resort fee is $29.12. Who’s your hotel lawyer? This site does not include all credit card companies or all available credit card offers. Fashion Show • Are resort fees illegal? More. 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. He is a member of JMBM's Global Hospitality Group(r), in which capacity he negotiates union contracts and resolves labor disputes throughout the country, defends class action claims, develops strategies for the mass onboarding and separation of employees, and recommends proactive changes to employers' policies and practices in order to minimize potential liability risks. His hospitality experience includes hotels, condo-hotels and mixed-use projects. She manages all aspects of the entitlement process, including representing clients before local and state agencies, commissions and councils. She represents owners and developers in land use, zoning, environmental, litigation and construction matters. The average price of a resort fee in the U.S. is about $25. This post contains references to products from one or more of our advertisers. 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. Travelers have been “subjected to deceptive hidden fees charged by hotels, ... both for deceptive resort fee practices. CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners. Jamie also works frequently with litigators on the tax aspects of litigation, judgments and settlements. Bob also advises hotel owners regarding telecommunications, software, internet, e-commerce, data processing and outsourcing agreements. We have provided counsel on Attorney General investigations. To read Marty's articles, go to www.HotelLawBlog.com These are stupid? We do not represent consumers with complaints against hotels. 623.7230 or markadams@jmbm.com. About 45 percent of hotels in resort locations, such as ski or beach destinations, charge resort fees, he says. 4489 become law? 4489 is entitled the Hotel Advertising Transparency Act of 2019. When aggressive litigation is the best strategy, he is a vigorous and effective advocate for his clients. 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. 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. 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases. Global Hospitality Group® 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”. Travel much, you two? Congress has a real opportunity here to pass a bipartisan, common-sense bill on behalf of American consumers.”, Resort fees — and associated mandatory fees like destination fees and amenity fees — have come under the spotlight in 2019. E-mail: Jim is recognized as one of the top hotel lawyers in the world and has led the Global Hospitality Group® in more than $87 billion of hotel transactions and more than 3,900 hotel properties located around the globe. Several myths about “resort fees” have arisen. Jamie has extensive experience with foreign compliance matters, including each variation of the IRS amnesty programs. Consumer Protection and Commerce Subcommittee, You can now earn up to 65,000 miles with latest Alaska card offer, How President-elect Biden plans to travel to his Washington, DC inauguration, Now up for bid: Parts from Delta Air Lines’ last Boeing 747, Blue Cash Preferred® Card from American Express, Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. A class action lawsuit investigation has been launched to find customers who may have fallen victim to illegal resort fees and are due compensation. That's $750 toward travel when you redeem through Chase Ultimate Rewards®. Traveler frustration with these fees has been growing, and several state attorney generals are fighting the added costs in the courts. We may receive compensation when you click on links to those products. Click here to see the complete text of H.R. They’re illegal in a lot of other countries, but the U.S. has no laws that say hotels can or cannot charge them. Follow Follow Unfollow. You might have been charged a resort fee—even if you weren’t staying at a resort. 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. We found one Las Vegas hotel charging a room rate of $26 with a "resort fee" of $34. Resort fees could die quickly at the hands of the FTC. He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. 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. Please contact us if you would like to discuss any issues that affect your hotel interests or see how our experience might help you create value and avoid unnecessary pitfalls. For a more comprehensive list of hotels properties and projects we have worked on, see our Credentials. 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. Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. 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. Friday 23 March 2018 17:40 34 comments Donald Trump ’s empire has brought the “resort fee” to the UK. Guy Maisnik 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. Impending eruption of litigation over Resort Fees? Some hotels state that their resort fees cover the cost of local calls, pool towels, minibar items, wireless internet access, and/or a daily newspaper. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. This is not the first time Congress has tried to do this. 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. Patronage depends on being treated fairly agreements in the negotiation of several hundred management agreements, as well spa... Loyalty program member or frequent guest, make it clear that your continued patronage depends on being treated.! 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