by Lacey Pfalz
Last updated: 11:55 AM ET, Mon July 22, 2024
A new hotel licensing law introduced on July 18, 2024, in New York City is being called “disruptive” by the American Hotel & Lodging Association today.
The bill, introduced last week in the New York City Council, would require hotels to obtain additional licenses to operate.
Under the license, non-union hotels would be unable to use subcontractors for core functions of the hotel, and all hotel owners would be classified as joint owners along with hotel operators.
AHLA’s Interim President & CEO Kevin Carey issued this statement:
“This abrupt and destructive bill would permanently alter how hotels operate and threaten the jobs of thousands of New Yorkers,” said Carey. “If it becomes law, thousands of hotel jobs could be lost, hotels will shutter, and New York City’s economy – especially small business retailers, restaurants, and other hotel service providers – will suffer substantially. The bill imposes workplace rules that should be negotiated at the collective bargaining table, and fast-tracking a proposal of this magnitude in the dead of summer without input from hoteliers is policy malpractice.”
“What’s more, the legislation creates a one-size-fits-all model that fails to take into account the unique staffing and operational needs of the city’s nearly 700 hotels. The legislation’s proposed ban preventing non-union hotels from subcontracting certain functions will ruin the ability of many small-business hotels to maintain consistent operations in this tough labor market. The American Hotel & Lodging Association urges council members to take a more deliberative approach to this bill, which would have a widespread negative impact on the city’s workforce and economy.”
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