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Since resort fees are a mandatory fee that is not included in the advertised room rate of the hotel the fee is often priced differently. Since a portion of the room rate is separated out, that portion is not considered for taxes. This is lost revenue for the city and state.
2011 U.S. HOTEL FRANCHISE FEE GUIDE | PAGE 11 As indicated in the preceding table, franchise fees as a percentage of total rooms revenue ranged from 2.0% to 13.2%, in the mid-rate category in 2010. The average franchise fee as a percentage of total rooms revenue was 9.9%, and the median was 10.3%.