AHLA: NYC Council’s New Legislation Would Harm Hotel Industry

Councilwoman Julie Menin of New York City Council introduced Int. No. 991 on July 18 – a bill that suggests burdensome staffing mandates for NYC hotels and additional regulations that could disrupt hotel operations, jeopardize the franchise business model, and force certain hotel owners to sell their properties.

On August 2, Menin presented amendments to the bill that fail to resolve the numerous issues associated with the legislation.

The revised text of the bill:

• Creates a new hotel licensing structure that the city cannot afford to properly implement.

• Mandates that hotel owners must be the direct employer of all housekeeping, room attendance, and maintenance staff.

• Prohibits all New York City hotels from sub-contracting out key operational functions, directly harming small NYC businesses.

• Forces some of NYC’s largest and most iconic hotels to close or be sold due to conflicts with federal tax law.

• Eliminates the ability of hotel management companies to operate in NYC.

• Creates one-size-fits-all minimum staffing and cleaning mandates that ignore individual hotel needs and guest preferences.

• Will cause thousands of NYC hotel workers to lose their jobs.

Kevin Carey, the Interim President & CEO of the American Hotel & Lodging Association, released a statement in response to the revised bill targeting hotels in New York City, expressing concern over the proposed drastic measures.

“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. 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 Julie Menin (D-District 5) and the bill’s proponents, let’s review the facts and statistics to see what picture they paint. Advancing these claims with scant data and no public process will significantly damage the hotel industry, harm New York’s economy, and negatively impact both the city’s reputation and its fiscal health.”

“Simply stated, this proposal is bad for everyone: hotels, NYC’s tourism economy, guests, and hotel employees. The revised bill still imposes expensive and burdensome requirements on hotel owners and effectively prohibits hotel management companies from operating in the city. As it stands, these revisions 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. The effects of this abruptly introduced legislation will be far-reaching and potentially devastating.”

“On behalf of the 30,000-plus members AHLA represents, we urge Councilwoman Menin and City Council leadership to withdraw this legislation.”