A guest at St. Pancras London, a Marriott Autograph Collection hotel, got a nasty surprise on his bill: an extra 5% of his nightly room rate, bundled into something called an "Accommodation Package." He had already tipped housekeeping and restaurant staff directly. When he queried it, the hotel's response was revealing — the charge was discretionary, and they'd happily refund it. He just had to ask.
That's the catch. The money is collected automatically, then framed as an optional contribution. If you don't scrutinise your folio line by line, you pay it. If you do notice but don't fancy an awkward conversation about taking money back from staff, you probably pay it too. Either way, the hotel collects more than its advertised rate.
This isn't a one-off. The practice has been spreading across London since at least early 2022, when Hyatt introduced a 5% accommodation service charge at Andaz London Liverpool Street, citing staffing shortages. It has since grown. Five Hyatt properties in London now list one, including Great Scotland Yard and Hyatt Regency London Blackfriars. The Savoy and The Landmark London disclose a discretionary 5% on accommodation — The Landmark adds 12.5% on food and drink on top. The BoTree and The Newman combine a 5% room charge with a 13.5% food and beverage charge, with The Newman at least saying openly that guests can ask to amend or remove discretionary charges. The Stratford charges 4%.
Why do it this way instead of simply raising rates? Two reasons. First, money structured as optional service charges can fall outside VAT in Britain — a genuine tax saving compared with a higher taxable room rate. Second, pooled charges let hotels keep base wages lower and flex staffing costs down in quiet periods. Since October 2024, UK law does require that tips and service charges go to workers in full and be allocated fairly, so staff do benefit — but that doesn't explain why hotels assume permission to take the money in the first place.
For travellers, the practical takeaway is simple. When you check out in London, compare the accommodation line on your bill against your booking confirmation. The charge may not be labelled "service charge" at all — it can be folded into a package rate. If you spot it and you've already tipped directly, or you simply object to opaque fees, you can ask for it to be removed or refunded and a revised bill issued. Hotels must oblige, because the charge is only lawful as an add-on if it's genuinely optional.
Pooled gratuities do have a fair argument behind them: they reach the kitchen porters and laundry staff guests never meet. But if a hotel wants an extra contribution for the team, asking first would cost it nothing. Until that becomes the norm, the burden is on guests to read the bill — in London at least, the advertised room rate is increasingly just the starting point.
