Paxton Secures $1.25 Million Settlement With Hyatt Over Hidden Hotel Fees

December 31, 2025 – AUSTIN — Texas Attorney General Ken Paxton announced a $1.25 million settlement with Hyatt Corporation after the company was accused of violating Texas consumer protection laws by advertising hotel room prices that did not reflect the full cost paid by customers.

According to the attorney general’s office, the lawsuit alleged Hyatt used deceptive pricing practices by marketing rooms at attractive daily rates while later adding mandatory and unavoidable fees that increased the total price. State officials said those added charges were either disclosed late in the booking process or presented in a way that made it unlikely consumers would realize the initial price was not the actual cost of the room.

Paxton’s office argued the practice gave Hyatt an unfair competitive advantage over hotels that clearly disclose the full price of a room upfront, limiting consumers’ ability to accurately compare lodging options.

Under the terms of the settlement, Hyatt is required to clearly disclose all fees added to the advertised price of a hotel room, allowing customers to see the true cost before completing a reservation. The agreement also includes the $1.25 million payment to the state.

“Texas consumers should never be misled by hotel companies attempting to hide fees and charges,” Paxton said in a statement. “Any hotel company or booking site that tries to mislead and take advantage of Texans will be exposed and will pay a heavy penalty for their deception.”

The Hyatt settlement marks the sixth such agreement reached by Paxton targeting deceptive hotel pricing practices. Previous settlements were secured with Marriott, Omni, Choice Hotels, Hilton, and Booking.com.

State officials said these enforcement actions have also helped drive broader changes, including new federal regulations aimed at cracking down on so-called ‘junk fees’, designed to improve transparency for travelers booking accommodations online.