The future of New York City’s hotel industry hangs in the balance as the City Council considers a revised bill that could impose significant new regulations on hotels across the city.
The American Hotel & Lodging Association (AHLA) has raised strong objections to the proposed legislation, warning that it could have devastating consequences for the city’s iconic hotel sector, leading to widespread closures and mass layoffs.
The bill, originally proposed by Councilwoman Julie Menin in July, and now revised, seeks to introduce stringent staffing and operational mandates that the AHLA believes are both onerous and unnecessary.
Kevin Carey, AHLA Interim President & CEO, expressed deep concerns, stating that the revised bill still fails to address the major issues that threaten to cripple the hotel industry in New York City.
“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 Carey.
He emphasized the need for all stakeholders to be part of the conversation, highlighting the bill’s potential to inflict “grave, far-reaching damages” on the city’s economy and its reputation as a global tourism destination.
The revised legislation proposes several changes, including a new hotel licensing structure, a requirement that hotel owners directly employ all housekeeping and maintenance staff, and a prohibition on subcontracting key operational functions. These measures, according to the AHLA, are set to disrupt hotel operations significantly and could lead to the closure of some of New York City’s most prominent hotels.
One of the most contentious points is the bill’s impact on the franchise business model, which many hotels in New York City rely on. The proposed changes could force some hotel owners to divest their properties, leading to financial instability and uncertainty across the industry.
The AHLA also warned that the legislation could result in thousands of hotel workers losing their jobs, exacerbating the economic challenges already faced by the city.
Despite revisions to the bill introduced on August 2, the AHLA insists that the core problems remain unresolved. Carey criticized the lack of a public process and the absence of comprehensive data to support the bill’s claims, calling for the legislation to be withdrawn.
“Simply stated, this proposal is bad for everyone: hotels, NYC’s tourism economy, guests, and hotel employees,” Carey asserted. The AHLA, which represents over 30,000 members, is urging the City Council to reconsider and collaborate with industry stakeholders to find a more balanced solution that protects jobs and supports the long-term health of New York City’s hotel industry.
As the debate continues, the outcome of this legislation could have far-reaching implications not just for New York City but also for the broader hospitality industry. Stakeholders are watching closely to see how the situation unfolds and whether a compromise can be reached that addresses public safety concerns without compromising the city’s economic vitality.
