realestate

Hotel industry strikes agreement with city council on disputed licensing legislation

Hotel industry reaches compromise with labor union, clearing path for Safe Hotels Act passage.

T
he city's hotel industry, workers union, and City Council member Julie Menin reached a compromise on a licensing bill that had been fiercely opposed by hotel operators. The deal clears the way for its passage after revisions to the Safe Hotels Act addressed key concerns.

    Hotel Association of New York City dropped its opposition after the legislation was revised to make exceptions for highly technical skills, such as engineers and security personnel. This addresses the industry's main concern with the original bill, which would have prevented hotels from hiring subcontractors. The revised bill also allows licenses to be transferred and excludes real estate investment trusts.

    Menin said she was pleased by the agreement, stating that they listened to stakeholders and prioritized their feedback. A hearing is scheduled for October 9. Menin's initial bill faced backlash from hotel operators who claimed it would boost union hotels at the expense of nonunion ones. The city's powerful hotel union supports the revised version.

    The American Hotel & Lodging Association drafted its own version, eliminating core staff provisions, but was not part of the negotiations and does not support the bill. However, its interim president said the new legislation still contains language that will cause economic harm to small hotels and businesses owned by immigrants and minorities.

Hotel owners meet with city officials to discuss licensing reform agreement.