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Hotel Industry Pushback Against New Licensing Legislation

Hotel Operators Reach Agreement on Licensing Bill, But Not All Council Members Are On Board

H
otel operators have reached an agreement on the Safe Hotels Act, a contentious licensing bill that has sparked debate among industry groups. Council member Julie Menin and the Hotel Association of New York City (HANYC) announced they had found common ground to pass the bill, which is now all but certain to become law due to its 36 sponsors in the 51-member Council.

    The union and HANYC negotiated the deal, but other hotel groups are unhappy with the outcome. They claim the bill favors union hotels and was crafted without their input. However, HANYC president Vijay Dandapani maintains that his organization has always advocated for the best interests of the hotel industry and New York City's tourism economy.

    The revised bill requires hotels to directly employ core staff, a major point of contention among nonunion operators. Exceptions are made for employees with highly technical skills, such as engineers and security personnel. Collective bargaining agreements will satisfy licensing requirements for at least 10 years or the duration of the agreement.

    Some groups, including the American Hotel & Lodging Association and the NYC Minority Hotel Association, believe the changes do not go far enough to address their concerns. They argue that the measure would harm minority-owned hotels in outer boroughs by favoring unionized hotels in Manhattan.

Hotel industry representatives protest new licensing legislation in city council meeting.