Some hotel owners in the Big Apple have flipped out in support of a City Council plan that critics called a “nuclear bomb” to the lodging industry that would drive up room rates in the city.
The New York City Hotel Association has approved a proposal that would create new licensing requirements for lodging businesses, with some modifications. However, some smaller hotels still support the controversial plan.
The association's president previously called the bill a “nuclear bomb” and some owners have banded together to raise $20 million to lobby against the plan.
Councilor Julie Menin, the bill's sponsor, said: “We are listening to our stakeholders, prioritizing their feedback and ensuring that our hotel guests, employees and the broader community I look forward to hearings on this important bill.”
The Hotel Workers Union, the union for hotel workers in the city, supports a bill that would ban hotels from outsourcing most services, which would mean hotels would have to directly hire many workers. It means not to be.
The latest version of the bill makes clear that the Consumer Affairs Commissioner cannot revoke licenses for temporary service disruptions such as leaks.
Menin, who served as consumer affairs secretary from 2014 to 2016, said hotel officials feared they could lose their licenses over minor disruptions in service.
The councilman, a former regulatory attorney, said the bill aims to make hotels safer by adding panic buttons and other safety requirements.
Other amendments to the bill included narrowing the scope of the subcontracting ban to exclude engineers and other technical workers.
The ban on subcontracting for front desk employees and housekeeping still exists, but the proposed amendments add coverage to existing subcontracting agreements.
Menin said hotels are required to rehire front desk staff and housekeepers who work for subcontractors under an existing law called the Worker Retention Act.
But small hotel owners said renovations alone are not enough.
Mukesh Patel, a New York City hotelier and founding member of the New York City Minority Hotel Association, said the bill would have a “disastrous impact.”
“The new bill will do nothing to protect small businesses and their families and will have a disastrous impact on our lives,” Patel said in a written statement shortly after the changes were announced. Ta.
Kevin Carey, interim president and CEO of the American Hotel and Lodging Association, said the bill, if passed, would cause “significant economic harm” to small hotels.
“While we appreciate legislators’ willingness to listen to industry feedback and work toward smarter outcomes for New York City hotels, the new version of the bill still requires contains language that will cause significant economic harm to hotels and hotels that primarily support immigrant and minority-owned businesses,” Carey said.
“There is no question that if this bill passes, many small businesses in New York City will close and thousands of hard-working New Yorkers will lose their jobs,” Carey added. “We cannot accept any legislation that has such a disparate impact across our industry.”
Thirty-six of the chamber's 51 members have already signed on in support of the bill.
