A bill currently before the City Council that seeks to reform the nearly 700 hotels in the Big Apple has become a bone of contention, and after criticism from members of the hospitality industry, the sponsor of the legislation, Councilwoman Julie Menin, has just presented a new, amended version. An estimated 62 million visitors come to the city each year.
The New York City legislature member said she decided to make changes to the original initiative, known as the “Safe Hotels Act,” after holding discussions with organizations such as the Hotel Trades Council (“HTC”) and the Hospitality Alliance to modify the proposed text.
The policy said the proposed changes address concerns raised by restaurants, bars and nightlife establishments, while maintaining provisions that seek to improve the health, safety and conditions of hotels for guests, workers and local communities, in an industry that despite its economic impact, is one of the few that remains unregulated in terms of public safety, health and consumer and employee protection.
Menin revealed that between 2019 and 2023, the NYPD received more than 14,000 complaints of incidents that occurred in hotels, and 39 murders since 2009, and that consumer complaints to the city’s Department of Consumer and Worker Protection about the industry have doubled in the past five years. Some hotels have been the target of human trafficking and public safety issues.
Among the changes the bill sponsor included is an exception for restaurants, bars and nightlife establishments in hotels to ensure they are not affected by the legislation, limiting direct employment requirements that will only apply to “core hotel jobs” such as housekeeping and front desk service. Menin also said that to address industry concerns and clarify definitions of hotel ownership, the “joint employer” language has been removed to ensure that real estate investment trusts (REITs) are not prohibited from owning hotels.
Similarly, specific staffing ratios and prescribed numbers, which hospitality industry stakeholders believed could increase costs, were removed from the bill, warning that “continuous coverage” by a single employer at a hotel’s front desk is required to ensure the safety and service of guests and staff.
“As a legislator, I take pride in bringing stakeholders together to achieve comprehensive and inclusive public policy decisions. This hotel licensing bill is a shining example of the good work that can be done when we work together toward a common goal,” said Councilwoman Menin, adding that the outsourcing ban that previously covered all hotel staff has also been amended to eliminate security positions that would otherwise be permitted through outside vendors.
“We now have a bill that addresses feedback from the hotel and hospitality industry, while maintaining basic health, safety and worker protections to better regulate and support hotels operating in New York City,” Menin said.
Another point that was changed in the new bill concerns the prerequisite for obtaining a license, which will conform to existing standards for other business licenses required by the city. “With this change, the Commissioner of the Department of Consumer and Worker Protection (“DCWP”) will have less discretion and a more uniform model to follow when reviewing an applicant’s suitability for a hotel license. In addition, mandatory wage reporting, record keeping, and posting have also been eliminated to minimize the burden on DCWP staff,” the new bill adds.
Rich Maroko, president of the Hotel Trade Council (“HTC”), was optimistic about the changes made to the article and stressed that when government agencies listen to the parties, more responsible public policies are promoted.
“Through productive and thoughtful discussions with stakeholders, we now have a stronger, more inclusive bill that offers effective protections for hotel guests, communities, and workers, while addressing the concerns that have been shared,” said the hotel leader, who added that the new provisions will help preserve and improve the hospitality sector in the Big Apple.
Andrew Rigie, executive director of the NYC Hospitality Alliance, who had called the initial proposal a threat to independently owned restaurants and bars and their workers, said the new text addresses the industry’s concerns and helps hospitality businesses stay open.
“It recognises the important role played by independent restaurants and bars and their hotel workers. They are central to our city’s position as a global destination, reputation as the Culinary Capital of the World, with venues offering spectacular views from top-notch rooftop bars and are essential to our local economy,” said Rigie.
Despite the changes, industry insiders continue to criticise the project, describing it as a threat to the industry itself and tens of thousands of workers, as it would, among other things, increase room rates.
Vijay Dandapani, president and CEO of the Hotel Association of New York City, lashed out at the bill, saying it would hurt businesses and workers.
“The authors of this bill continue to act in bad faith, making changes without any expert input from the industry after claiming they would stop to discuss the bill’s many flaws. They say it would help workers, but in fact it would hurt far more workers than it would help,” the executive said.
Kevin Carey, interim president and CEO of the American Hotel & Lodging Association, joined the protests, calling for a halt to the bill’s advance in the City Council.
“The Council’s discussions on the Hotel Safety Act continue to exclude those who will be most impacted by the legislation: hotel owners, management companies, subcontractors and tens of thousands of hotel workers. It is imperative that all stakeholders have a real seat at the table,” Carey said.
“If this is a matter of public safety and crime, as Council Member Julie Menin and the bill’s proponents have asserted, let’s look at the facts and statistics to see what the picture is. Making these claims with little data and no public process will significantly harm the hospitality industry, hurt New York’s economy, and negatively impact both the city’s reputation and its fiscal health,” Carey concluded.
The project in summary
- 700 hotels would have stricter regulations and licenses
- “The bill would create a licensing system for hotels in New York City that would ensure that hotels meet basic standards of hygiene, public safety, and workplace safety that help mitigate the dangerous and all-too-frequent occurrence of bad actor problems ranging from human trafficking to child prostitution rings to serious health and cleanliness issues to worker mistreatment (…) by establishing a framework for accountability when hotels fail to meet essential standards.”