Proposed hotel bill creates uncertainty in NYC

The newly proposed "Safe Hotels Act" may be stalled in the legislative process, but it is already impacting the financial stability and operating costs of today's hotels

According to the New York City Council, the proposed bill would require hotels to obtain a license to operate in the city. It would also require larger hotels to maintain a 24-hour front desk and employ at least one security guard. In addition, all hotels would be responsible for ensuring the cleanliness of each guest room and would be required to directly employ all core and critical staff.

Key takeaways

• "The proposed legislation could have a significant impact on the financial performance and operating costs of existing hotels in New York City," said Kevin Davis, CEO of JLL's Hotels & Hospitality Americas;
• "Hotel owners in New York are already facing a number of profitability pressures, ranging from general inflation to rising business and labor costs. This bill, with its staffing mandates and restrictions on subcontractors, would only exacerbate these challenges," said Kevin Carey, interim president and CEO of the American Hotel & Lodging Association;
• Hotels in New York City are already required to obtain and maintain nearly 20 different permits to operate, making the claim that the industry is unregulated "simply unfounded.

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