On Wednesday, hundreds of hotel and hospitality professionals gathered on the steps of New York City’s City Hall to voice their opposition to Intro 991, the “Safe Hotels Act.” The event brought together representatives from across the hospitality sector who highlighted the effects this bill could have on New York City’s hotels, subcontractors and small businesses.
On July 18, Councilwoman Julie Menin proposed a bill that would require hotels to obtain an additional operating license and prohibit the use of subcontractors for core functions such as housekeeping, front desk services and security. At the time, the American Hotel & Lodging Association said the bill would impose “onerous and unnecessary staffing requirements on hotels in the city and mandate other rules that would needlessly disrupt hotel restaurants, threaten the operation of the successful franchise business model, and require some hotel owners to divest from their properties.” According to AAHOA, the bill has “drawn widespread criticism for what many see as an attempt to impose unionization on the hotel industry.” Menin has since shared a new version of the bill.
The rally followed a similar demonstration that attracted 1,500 attendees held last month.
Industry insiders shared their perspectives on how the legislation could affect the city’s hotels:
“Intro 991 takes dead aim at a single industry and will do sweeping harm to the hotel sector, the economy and hotel guests,” said Kevin Carey, interim president & CEO of the AHLA. “This bill will cause devastating and unintended consequences across New York City’s tourism and hospitality industries, forcing many hotels and small businesses to close their doors. We urge the City Council to reconsider and work toward real solutions that protect both safety and the livelihoods of thousands of hardworking New Yorkers.”
“Small hotels like ours rely on lean operations to provide exceptional service,” said Oksana Rudenko, director of operations at a Brooklyn-based hotel cleaning subcontractor. “The one-size-fits-all approach of this bill will push us out of business, and the ripple effect will be devastating for our employees and the local economy. Many small businesses, including ours, will not survive if this legislation passes.”
"The hotel industry takes our responsibility to the health and safety of our employees and guests incredibly seriously. If there are challenges and issues, we want to be part of the conversation and the solution,” said Sarah Bratko, vice president of government affairs, AHLA. “In 2019, AHLA launched the ‘No Room for Trafficking’ initiative, and since then, over 1.8 million trainings have been completed by hotel employees. The industry worked with prevention organizations to pass a law in New York that mandates human trafficking training for hotel employees. While we thank Councilwoman Menin for meeting with us, this version of the bill will still have devastating impacts on the lodging industry and small businesses in New York City.”
“It’s upsetting to be here under these circumstances,” said Preyas Patel, northeast regional director at AAHOA. “When Int. 991 was first proposed, it was said to be intended to improve guest and hotel worker safety. I would like to see the data showing that complaints and crimes have increased at only non-union hotels, because AAHOA members have not experienced this. Why are we moving forward with this bill if this data does not exist? This version shows that the only goal is to increase the unions in hotels, without addressing the concerns of small, minority-owned hotels. We urge the Council to reconsider before moving forward with a bill that will destroy our businesses and harm the city's economy.”
AAHOA Members Speak Out
A number of AAHOA dignitaries attended the event as well and shared their feelings:
“This bill disproportionately impacts minority and small business owners, many of whom have poured their life savings into their hotels,” said Jagruti Panwala, president and CEO of Wealth Protection Strategies and former chairwoman of AAHOA. “We’ve built our businesses through hard work, and Intro 991 threatens to dismantle that progress. It’s critical that the New York City Council considers how damaging this bill will be for New York’s diverse hotel community."
“[We are] so proud of the strong leaders in our industry who spoke out against the union-sponsored Unite Here legislation that threatens to devastate New York City's travel and tourism sector," said AAHOA Chair Miraj S. Patel. "If passed, this could force many NYC hotel owners to shut their doors, crippling the local industry and eliminating thousands of jobs. We cannot allow this to happen—we must protect the future of hospitality and the livelihoods it supports."
"It is disheartening so many council members who claim to care about small and minority businesses would be willing to destroy our small, minority-owned hotels because we cannot afford the union's demands," said AAHOA Northeast Regional Director Preyas Patel. "Our hotel owners and workers form a tight-knit and supportive community that is an important part of the City's tourism and overall economy —not to mention a vital resource to moderate-income tourists and New Yorkers with visiting family members."
Since the legislation was introduced in July, AAHOA Members have contacted the New York City Council to voice their opposition and ask the council to reconsider the proposed act.
"When considering a subcontractor, we not only inquire about their current training and availability, we also still provide them property-specific training, exactly the same as direct hire employees," Panwala said. Panwala is a first-generation hotelier who owns multiple hotels across the United States, including a 60-room hotel in the Bronx. "This is only prudent to minimize liability and protect our investment, not to mention to ensure anyone who works in our hotel helps drive guest satisfaction. We are not alone. Subcontractors are options for many other industries; why remove them entirely for hotel operators?"
"It continues to get difficult to maintain employees in a competitive workforce market," said Purvi Panwala, co-founder of a hotel ownership group specializing in boutique hotels, including one in Brooklyn. "With the challenges we face to maintain day-to-day operations and offer our guests the best experience possible, we have turned to subcontractors for assistance."
"Requiring us to further regulate our operations and limit our flexibility in management and employee contracts would only increase the already high room rates in the city and surrounding area," said Mitesh Ahir, an AAHOA Member from New York. "Forcing us to increase our rates would severely diminish our overall occupancy, thus lowering the overall revenue of the hotel businesses, which would then lead to lower tax collection. Therefore, this bill does not only hurt our business but also hurts the states and city's budget allocation."