REPRESENTATIVES OF THE U.S. hospitality industry recently rejected the New York City Council's revisions to the proposed hotel licensing bill, which include a new licensing structure, direct employment of housekeeping and maintenance staff, and a ban on subcontracting key operations. The American Hotel & Lodging Association and the Hotel Association of New York City objected to the amendments, warning of potential closures and layoffs in the city's hotel sector.
The bill, known as the Hotel Safety Act, originally proposed by Councilwoman Julie Menin on July 18 and revised on Aug. 2, seeks to introduce staffing and operational mandates that AHLA considers unnecessary.
“The city council’s discussions regarding the Hotel Safety Act continue to exclude those who will be most affected by the legislation—hotel owners, management companies, sub-contractors and tens of thousands of hotel workers,” said Kevin Carey, AHLA’s interim president and CEO. “It is imperative that all stakeholders have a real seat at the table. If this is a matter of public safety and crime, as has been claimed by Councilwoman Menin and the bill’s proponents, let’s review the facts and statistics to see what picture they paint.”
Without more data and public process, Carey said, the bill “will significantly damage the hotel industry, harm New York’s economy and negatively impact both the city’s reputation and its fiscal health.”
According to AHLA, the revised bill:
- Creates a new hotel licensing structure the city cannot afford to implement.
- Mandates that hotel owners directly employ all housekeeping, room attendance and maintenance staff.
- Prohibits NYC hotels from subcontracting key operational functions, harming small businesses.
- Forces some of NYC’s largest hotels to close or be sold due to conflicts with federal tax law.
- Eliminates the ability of hotel management companies to operate in NYC.
- Imposes one-size-fits-all staffing and cleaning mandates that ignore individual hotel needs and guest preferences.
‘Bad for everyone’
AHLA warned that the legislation could result in thousands of hotel workers losing their jobs, worsening the city's economic challenges.
“Simply stated, this proposal is bad for everyone: hotels, NYC’s tourism economy, guests and hotel employees,” Carey said. “The revised bill still imposes expensive and burdensome requirements on hotel owners and effectively prohibits hotel management companies from operating in the city.”
The revisions, according to Carey, do not resolve the catastrophic consequences of this bill, which could lead to hotel closures and mass layoffs of workers, while ignoring many operational realities and guest preferences. He said the effects of the legislation will be far-reaching and potentially devastating.
According to Real Deal report, hotel trade groups argue the bill aims to enforce unionization by diminishing the price advantage of non-union hotels. They also contend that the city can't afford to implement the new rules and that subcontracting restrictions will harm small businesses.
Vijay Dandapani, HANYC president and CEO, emailed Menin that her changes to the bill are “wholly unacceptable” and would make it harder for hotels to obtain loans.
“The bill…remains an existential threat to the entire hotel industry,” Dandapani told Real Deal.
However, Menin said she continues to meet with interested parties and expects further changes to the bill. “The whole point of creating a new version was to begin a dialogue,” she was quoted as saying in the Real Deal report. “We’ve received a lot of feedback since the introduction and are open to more.”
Menin said that her goal is to ensure the safety of hotel guests, employees and neighbors.
Rep. Aaron Bean delivers keynote addressPhoto credit: AAHOA