Skip to content

Search

Latest Stories

NYC council seeks to require additional licenses for hotels

AHLA calls bill 'abrupt' and 'destructive' to hospitality economy

NYC council seeks to require additional licenses for hotels
NYC Council hotel regulations

NEW YORK CITY Council members recently introduced a bill requiring hotels to obtain additional licenses to operate in the city. However, the American Hotel & Lodging Association called the bill “destructive,” warning it would permanently alter hotel operations and threaten thousands of jobs in the city.

The bill’s sponsors claim it addresses several issues, including prohibiting hotels from using subcontractors for core functions, adopting minimum hygiene standards and committing to policies to prevent prostitution and human trafficking. AHLA urged the council to slow down on the proposed licenses, noting they would decimate the hospitality economy.


“This abrupt and destructive bill would permanently alter how hotels operate and threaten the jobs of thousands of New Yorkers,” said Kevin Carey, AHLA’s interim president and CEO. “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.”

Carey said the council should take more time to consider the bill.

“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,” he said.

‘Hotel complaints double’

The proposed legislation stems partly from complaints to the city about hotels more than doubling in the last four years, according to Councilwoman Julie Menin, the bill’s sponsor, in a report published in NY Daily News. Securing the proposed licenses would require addressing several issues affecting hotels and their neighborhoods.

Menin, who previously served as consumer affairs commissioner under former Mayor Bill de Blasio, said the licenses would be issued by the Department of Consumer Affairs and Worker Protection. Hotels would be required to fulfill several obligations to secure them. If the hotels do not meet those obligations, they would be barred from operating in the city under the bill, she was quoted as saying in the report.

“People are complaining about public safety issues, they’re complaining about a lack of cleanliness, they’re complaining about a lack of front desk security, sanitation issues,” she said. “All of these issues can be addressed through licensing.”

‘Safeguarding subcontracted workers’

The subcontractor restrictions would apply only to core hotel services like cleaning and security, not to restaurants, gyms, or spas, the Daily News report said, citing the bill.

Menin and Rich Maroko, president of the NY Hotel Trades Council, said the legislation is needed to protect non-unionized subcontracted workers, who are sometimes assigned tasks beyond their training and are not always provided with necessary tools, such as cleaning supplies.

“Customers and workers should never have to put up with an environment that fosters dangerous crimes, public health issues, or substandard working conditions,” Maroko told Daily News. “This legislation will help protect guests, workers and local communities by ensuring that hotels live up to reasonable standards in order to do business in this city.”

However, AHLA argues the legislation imposes a one-size-fits-all model that ignores 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,” Carey said. “The 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.”

The bill, which applies to some hotels used as migrant and homeless shelters, aims to protect workers by instituting sanitary protocols and standards, according to the council members. Hotels would also need to submit a “sanitation policy” as part of the license application process.

AAHOA also expressed concerns about the bill.

"Fast-tracking such a significant proposal without input from the hospitality industry is counterproductive," said Miraj Patel, AAHOA’s chairman. "If passed, this bill would impose undue burdens on hotel owners. One of the most pressing issues facing the hospitality industry today is the labor shortage. By limiting access to approved, available subcontractors for essential functions like housekeeping, maintenance, and security, a hotel's ability to maintain consistent operations will be tougher in this labor market, especially for smaller hotels. Limiting this ability would severely hinder our operations and worsen the workforce shortage."

Laura Lee Blake, AAHOA president and CEO, urged the council to slow down and engage with all stakeholders.

"The hotel industry is already a leader in addressing human trafficking and upholding strict health and safety standards for guests, especially with changes from the pandemic,” she said. “By working together, we can find balanced solutions that support the city's economic health and address workforce challenges without imposing burdens that could negatively impact hotel operations. Collaboration is key."

AHLA recently backed the "Human Trafficking Awareness Training Recognition Act," which aims to increase human trafficking awareness through education.

Editor’s note: This story has been updated to include AAHOA’s response.

More for you

U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
Newly renovated Marriott Saddle Brook hotel in New Jersey, now managed by Stonebridge Cos.

Stonebridge to manage Marriott in Saddle Brook, NJ

Summary:

  • Stonebridge Cos. has added the Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
  • The renovated property is owned by Victory Worldwide LLC, led by CEO Anil Monga.
  • Located 20 miles from New York City, it is near the Meadowlands Sports Complex, Garden State Plaza and Hackensack University Medical Center.

STONEBRIDGE COS. RECENTLY added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service managed portfolio. The property is owned by Victory Worldwide LLC, led by CEO Anil Monga.

Keep ReadingShow less
Arizona SpringHill Suites Added as 9th DST by Peachtree

Peachtree adds AZ SpringHill Suites as 9th DST

Summary:

  • Peachtree Group added the 128-key SpringHill Suites Phoenix West Avondale in Avondale, Arizona, its ninth Delaware Statutory Trust offering.
  • The hotel, opened in August 2024, is positioned to benefit from Avondale’s population and economic growth.
  • Peachtree’s DSTs offer tax deferral for investors reinvesting proceeds from appreciated real estate.

PEACHTREE GROUP RECENTLY added the 128-key SpringHill Suites Phoenix West Avondale in Avondale, Arizona, structured as a Delaware Statutory Trust. This marks the company’s ninth DST offering since launching the program in 2022.

Keep ReadingShow less