The New York City Council has passed a hotel licensing bill that will require hotels to obtain a new license to operate in the city. The bill, which has sparked intense debate, was passed with a veto-proof supermajority. Supporters of the bill claim it will improve safety and working conditions, while opponents argue it will negatively impact the hotel industry. The bill, known as the Safe Hotels Act, requires hotels to maintain continuous front desk coverage and directly employ all core employees, such as housekeeping and front desk staff.
The new license will cost $350 and last for two years, with new operating restrictions aimed at improving industry standards. Hotels with over 100 rooms must directly employ core employees, a provision that will upset the operating model of hotels that rely on outside contractors. Hotels are also required to provide daily room cleaning and trash removal, and cannot accept reservations for less than 4 hours. Penalties for violations of the new regulations range from $500 for first violations to $5,000 for subsequent violations within a two-year period.
Supporters of the bill argue that it is necessary to improve industry standards and address safety concerns. Council Member Julie Menin, who introduced the bill, emphasized the need for greater oversight of the hotel industry, which has previously been laissez-faire. Complaints related to hotels have increased in recent years, with over 14,000 criminal complaints to the NYPD about hotels and motels, as well as 39 murders in them.
While some hotel owners and lobbyists have accepted the revised law, others have protested the new regulations. Critics argue that the constant staffing requirement will spike operational costs, leading to rate increases and the potential loss of guests. Some have raised concerns about staffing and training challenges in New York City’s tight labor market. The legislation has received mixed reception from the industry, with some praising it for creating a fair and practical standard for hotels, while others believe it will have negative consequences for small, independent, minority-owned hotels.
Overall, the new hotel licensing bill in New York City represents a significant shift in the regulation of the hotel industry. While supporters believe it will improve safety and working conditions, opponents argue that it will place undue burdens on hotel operators. The bill’s passage with a veto-proof supermajority ensures that it will become law, despite potential opposition from Mayor Eric Adams. The industry will now need to adjust to the new regulations and comply with the licensing requirements to continue operating in the city.
