Why is this such a suprise? Of course I'd rather the published rates included VAT, but it's pretty standard to exclude them.

This is also the case in New York and most every other hotel I've stayed at in the US. In fact, the rate in NY is subject to around 3 different taxes on top of the "basic" rate.

If they said that VAT was included in a particular rate, then tried to charge it twice, THAT would be gorunds for a lawsuit.