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By: Meyer Wolfsheim
In an exclusive report by the New York Post, hotel owners in New York City are mobilizing to raise $20 million to form a lobbying group aimed at opposing a new City Council bill they believe will devastate the local lodging industry. The newly formed Hotel Owners of New York (HONY) plans to maintain a $15 million annual budget for ongoing lobbying and educational efforts, as stated by its organizers to the Post.
“This job-killer bill has done the near impossible — galvanized the diverse interests of New York City’s hotel owners,” a representative for HONY told the Post. The group views the bill as an existential threat to the hotel industry and the livelihoods of tens of thousands of workers.
The move comes in response to a proposal by Democratic City Councilwoman Julie Menin. Last month, she introduced new hotel licensing rules that would prevent hotels from contracting out services, forcing them to employ most workers directly. According to sources, Menin, who is reportedly aspiring to become the next council speaker, introduced the bill at the request of the powerful Hotel Trades Council union, which has donated over $700,000 to council members since 2021.
Hotel owners argue that the proposed legislation would drive up room rates in New York City, where customers already face some of the highest rates in the nation, and could potentially force many out of business. A representative for HONY criticized the law, saying it imposes “arbitrary and burdensome operational mandates” that disregard the unique needs of the city’s nearly 700 hotels, threatening their ability to operate flexibly in a challenging market like NYC.
HONY also announced plans to launch an “Annual Hospitality Scorecard” to grade New York elected officials based on their support or opposition to industry priorities. This scorecard will be used to inform New Yorkers about where their representatives stand.
The Post reports that HONY plans to collaborate with the broader Hotel Association of NYC and the Real Estate Board of New York to strengthen their efforts.
Menin recently amended the bill to exclude hotel restaurants, bars, and nightclubs after widespread criticism. The revised bill no longer applies subcontracting restrictions to security workers but still affects front-desk and housing staff. Despite these changes, Vijay Dandapani, president and CEO of the Hotel Association of New York City, denounced the revised bill as still unacceptable. Dandapani accused the bill’s authors of acting in bad faith by making changes without expert input from the industry and likened the licensing bill to a “nuclear bomb” dropped on the lodging industry.
He stated that although the bill is touted as pro-worker, it would actually harm more workers than it helps. Of New York City’s 700 hotels, 400 are non-union, underscoring the potential widespread impact of the legislation.
While Menin declined to comment to the Post, the Hotel Trades Council defended its push for more regulatory oversight of the lodging industry, claiming it is both pro-worker and pro-customer. The council is confident that the licensing bill will pass despite opposition from hotel owners.
The bill appears to have enough support to pass in the City Council but lacks the 34 votes needed for a potential mayoral override. Mayor Eric Adams, who received significant backing from the union during his 2021 mayoral campaign, has yet to comment on the legislation.
