The Motel Association says many councils are taking advantage of motels, bombarding them with compliance costs.
Chief executive Michael Baines says motels up and down the country are facing never-ending bills.
He says every activity, process and procedure the councils insist the motels do has an administration charge attached to it.
Mr Baines says in some cases the charges are not fair, with motels paying far more than their bed and breakfast competitors.
He says with many council levies increasing, some moteliers are now struggling to make ends meet.