Proposed hotel bill creates ‘massive uncertainty’ in NYC
The recently proposed “Safe Hotels Act” may be lingering in legislative limbo, but it is already affecting the financial viability and operational costs for existing hotels and impacting risk for and development of future projects in New York City.
Background
On July 18, New York City Councilwoman Julie Menin (D-District 5) proposed Int. No. 991, legislation that calls for the city’s nearly 700 hotels to be licensed by the Department of Consumer and Worker Protection (DCWP). According to the New York City Council, the bill would require hotels to obtain a license in order to operate their business in the city. In addition, large hotels would be required to maintain continuous front-desk coverage and have at least one security guard, and all hotels would be required to maintain the cleanliness of each guestroom. Hotels would be required to directly employ all core and critical employees.