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ew York City's hotel industry is facing a tough time due to a decline in available rooms. Since 2019, the city has lost around 6,000 rooms, with half of those being in Manhattan, according to JLL. Some of this loss can be attributed to the conversion of over 16,000 rooms into migrant housing, as reported by Commercial Observer.

    The hotel special permit requirement enacted in 2021 is also a contributing factor. This regulation requires developers to go through the Uniform Land Use Review Procedure, a lengthy and costly process that has deterred some from building hotels. The industry views this as an attempt by the Hotel and Gaming Trades Council to gain leverage over nonunion hotels.

    Hotel operators are now pushing back against another measure, the Safe Hotels Act, which they see as favoring the union. The American Hotel & Lodging Association has drafted its own version of the bill, which would require hotel operators to obtain licenses but omits provisions that mandate direct employment of core staff. This aspect of the original bill is seen as a major concern by the industry.

    Council member Julie Menin, the sponsor of the Safe Hotels Act, remains committed to passing a bill that protects guests, workers, and neighbors. However, the AHLA argues that hiring full-time staffers would be more costly for hotels and eliminate subcontractor positions for thousands of New Yorkers.