Virgin’s Las Vegas hotel will not charge controversial resort fee

The attorney-general of the District of Columbia described resort fees as ‘straightforward price deception’

Owner’s suite: “Richard’s Flat” at Virgin’s new Las Vegas hotel (Virgin)

Virgin’s new Las Vegas hotel will buck the trend in the Nevada city by not charging a controversial “resort fee” when it opens on 25 March.

Richard Bosworth, chief executive of JC Hospitality, which owns Virgin Hotels Las Vegas, said: “We are so proud to be one of the first major casino-resorts in Las Vegas without a resort fee.”

The hotel, which is off the main strip on at 4455 Paradise Road, occupies the former location of the Hard Rock Hotel. It has undergone a $200m (£145m) “reconceptualisation”.

The minimum three-night stay for the opening is currently priced at $930 (£673), representing a nightly cost of £224 including tax.

The rate also includes parking, for which most Las Vegas hotels charge extra.

The premium suite at the new property is known as “Richard’s Flat”, after the Virgin Group founder, Sir Richard Branson.

Resort fees are extremely widespread in Las Vegas, with many properties in New York City, California and Florida also adding charges. They are also known as “destination fees” and “amenity fees”.

Hotels use resort fees, which typically add £30-£40 to the nightly room rate, to disguise the true cost of a stay. When Nevada’s 13 per cent sales tax is added to the room rate and the resort fee, the cost can sometimes double compared with the “basic” quote.

By keeping basic rates low, hotels look more appealing on price-comparison sites, and also reduce the amount of commission paid to intermediaries.

A year ago some Las Vegas properties raised their resort fees by several dollars in response to the coronavirus pandemic.

Properties justify the fee by claiming it covers a valuable range off extras including “premium wifi”, access to the fitness centre and local telephone calls.

The US Federal Trade Commission estimates that one in 14 American hotels now imposes a resort fee, earning them about £2bn in a year.

Attorneys-general in many states – as well as Washington DC – say the practice is unlawful. Some have recommended that guests seek to reclaim resort fees.

The attorney-general of the District of Columbia described resort fees as “straightforward price deception” in a case against Marriott.

A UK property that is part of Donald Trump’s portfolio, the Trump Turnberry in Ayrshire, briefly added a resort fee of £20 per night in March 2018, until The Independent pointed out that it broke UK pricing rules.