Hotel associations disagree on controversial NYC bill

NEW YORK CITY — The Hotel Association of New York City (HANYC) has signed off on a controversial City Council proposal that would create new licensing requirements for lodging businesses after the bill’s author made some modifications. However, other small hotel owners and associations are still against the bill.

“The B version of the bill is considerably different to what was introduced on July 18,” Vijay Dandapani, president and CEO of HANYC, told Hotel Investment Today. “Our position is that this version includes modifications that address some of HANYC’s most serious concerns. We are withdrawing our objections to the passage of the legislation so long as those changes remain in place.”

The amended bill says that the Department of Consumer Affairs commissioner cannot rescind a hotel license for a temporary service disruption, such as a leak. Other modifications include narrowing a subcontracting ban to exclude engineers and other technical workers.

A subcontracting ban still exists for front desk workers and housekeeping, but an amendment added to the bill grandfathers in existing subcontracts.

Hotels are required to rehire the front desk staff and housekeepers who work for subcontractors under a pre-existing law called the Worker Retention Bill.

Our position is that this version includes modifications that address some of HANYC’s most serious concerns. We are withdrawing our objections to the passage of the legislation so long as those changes remain in place.

Vijay Dandapani

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Dandapani said there is a committee hearing on October 9, after which the bill has to be “aged.” It would then go to a full City Council hearing, likely on October 23, when a vote could be held. The mayor would then have 30 days to sign it into law.

However, the American Hotel & Lodging Association (AHLA), which has lobbied against the bill since it was first introduced, said it remains opposed to the revised legislation.

“While we appreciate the councilwoman’s willingness to listen to industry feedback and work toward more sensible outcomes for New York City’s hotels, the new version of the legislation still contains language that will cause significant economic harm — primarily to small, family-owned hotels and the largely immigrant and minority-owned businesses that support them,” said Kevin Carey, interim president and CEO for the AHLA. “There is no question that this bill, if passed, will cause many of New York City’s small businesses to close and thousands of hard-working New Yorkers to lose their jobs. We cannot accept any legislation that causes such disparate impacts across the industry.”

When Hotel Investment Today asked Dandapani about the AHLA’s opposition to the bill, he didn’t offer a comment.

The Asian American Hotel Owners Association (AAHOA) also opposes the bill in its current form.

“The AAHOA has reviewed and opposes the union’s revised version of Int. 991 crafted behind closed doors. As advocates for minority hotel owners and operators, we support efforts to enhance guest and worker safety, including human trafficking training. However, this bill continues to ignore legitimate concerns of our minority-owned small business members, including limitations on subcontracted workers and many other operational burdens,” said Miraj Patel, chairman of AAHOA. “We urge the City Council to continue working with the industry to find a balanced solution that protects both workers and businesses.”

The AHLA said it will continue to advocate for a simple licensing bill that achieves the safety measures its proponents say are their stated goal. Critics of the bill say it could especially hurt small and minority-owned hotel owners in the city.

“The updated version of Int. 991, if anything, specifically targets immigrant and minority-owned businesses that support the thousands of hotels New York City’s tourism economy needs to survive,” said Mukesh Patel, a New York City hotelier and a founding member of NYC Minority Hotel Association. “The new bill does nothing to protect our small businesses and their families and will have disastrous impacts on our livelihoods. We cannot support this bill in its current form and look forward to voicing our opposition directly to Councilwoman Menin.”

History of the bill

On July 18, New York City Councilwoman Julie Menin proposed Int. No. 991, which would transfer the ability to hire staff away from hotel and restaurant owners and also require hotels to have licenses that would need to be renewed annually.

At the time, the AHLA said the bill would impose onerous and unnecessary staffing requirements on local hotels and mandate other rules that would “needlessly disrupt hotel operations, threaten the successful franchise business model, and require some hotel owners to divest of their properties.”

Menin introduced revisions to the bill on August 2, which both the AHLA and HANYC opposed.