Today, the The New York City Council Committee on Consumer and Worker Protection voted to establish a licensing program for NYC hotels.
Introduction 991-C, sponsored by council member Julie Menin, requires hotel operators to obtain a license to operate. In summary:
- The application term is two years, and there is a license fee of $350.
- Hotel operators are required to schedule staff for continuous coverage of their front desks, and large hotels are required to schedule a security guard to provide continuous coverage on the hotel’s premises while any room is occupied.
- All hotel operators would be required to maintain the cleanliness of each guestroom, which would include daily cleaning unless such service is declined by the guest.
- Hotel operators are required to directly employ their hotel workers, subject to an enumerated list of exceptions for certain positions.
- Operators of small hotels, which are defined as hotels with fewer than 100 rooms, are exempt from the direct employment requirement.
- Hotel operators are required to equip their employees with panic buttons and provide them with human trafficking recognition training.
- Hotel operators that violate the license conditions would be subject to civil penalties.
Council member Menin said the legislation represents a significant step forward in ensuring public safety, protecting workers, and maintaining the high standards in service our city is known for in the hospitality industry. "The journey to this point has been one of collaboration. We’ve engaged in extensive negotiations, listened carefully to stakeholders from all sectors, and refined the bill to address concerns without losing sight of its core objective of public safety and worker protection."
"After hard-fought negotiation and necessary adjustments that exempt small hotels from onerous costs and all hotels from arbitrary licensing rules, the legislation passed today by the City Council will create a fair and practical standard for hotels that will protect both our industry and employees—and also provide the best possible experience for our guests so that New York City remains the world’s top travel destination," Vijay Dandapani, president and CEO of the Hotel Association of New York City, said.
The controversial legislation has seen pushback from hospitality heavyweights such as the American Hotel and Lodging Association and the Asian American Hotel Owners Association.
“[Wednesday’s] passage of the ‘Safe Hotels Act’ by the City Council caps a legislative scramble and special interest power play that will do irreparable harm to the city’s hotel industry and tourism economy. From the start, this rushed and haphazard legislative process has been in service of one goal; to deliver a single special interest victory at the expense of small and minority-owned businesses. The updated version of the bill – while including some concessions thanks to the advocacy efforts of hundreds of hotels and hospitality professionals – still unfairly and arbitrarily targets hotels with 100 or more rooms with regulations that have nothing to do with the bill’s stated goal of increasing health and safety. Instead, this bill will do material damage to the businesses and the tax revenue that hotels generate for the city’s economy and result in higher costs for travelers,” AHLA Interim President & CEO Kevin Carey said in a statement. “Ultimately, this bill has had one very important impact: it has galvanized the hotel industry, inclusive of hotel owners, operators, brands, employees and subcontractors. We are now stronger and more united than ever.”
"While we acknowledge the passage of the Safe Hotels Act and the attempt to accommodate smaller properties, this revision still falls short of addressing our broader concerns with the legislation. Hoteliers of all sizes deserve the flexibility to manage their operations effectively to ensure efficiency and guest satisfaction," said AAHOA Chairman Miraj S. Patel. "The unintended consequences of this act will disproportionately affect minority-owned businesses, stifling entrepreneurship and innovation in the hospitality sector."
“The passage today of Intro 991 by the New York City Council is an affront to New York’s independent, particularly minority-owned, small businesses," said a spokesperson for the NYC Minority Hotel Association. "The so-called ‘Safe Hotels Act’ will do nothing to make New York safer, but it will force many smaller, minority-owned and family-run hotels to close, kill thousands of jobs, and cause room rates across five boroughs to skyrocket, eliminating affordable options for New York City’s millions of annual tourists and visitors. This misguided bill will do profound damage to New York City’s economy and hospitality industry."