The New York City Council has released a revised bill that would impose strong restrictions on the New York hotel industry. Kevin Carey, interim president and CEO of the American Hotel & Lodging Association (AHLA), issued the following statement: “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.” What will the bill change? On 18 July, New York City Councilwoman Julie Menin proposed Int. No. 991 – a bill that would impose strict, new staffing requirements on NYC hotels. Experts in the industry argue that the bill will disrupt hotel operations, threaten the industry’s business model, and ultimately require some owners to close down or sell. Some of the bill’s requirements are that:
- Hotel owners must be the direct employer of all housekeeping, room attendance, and maintenance staff.
- NYC hotels may not sub-contract out key operational functions to other businesses.
The controversial bill was initially set to impose even more restrictions on the industry. The hospitality industry would have been seriously affected by the proposed legislation. After public outcry, amendments were made to ensure that hotel restaurants, bars and nightclubs weren’t affected. However, many in the industry are still unhappy with the revised version. There are fears that hotel management companies will be unable to continue operating in New York City.
