New York City’s hotel owners are planning on raising $20 million to establish a new lobbying group aimed at fighting off a City Council bill they claim will devastate the local hospitality industry. In addition, the newly formed Hotel Owners of New York (HONY) plans to maintain an annual budget of $15 million for its lobbying and education efforts.
The proposed legislation was introduced by Democratic City Councilwoman Julie Menin, who is said to be vying for the position of council speaker. She has been backed by the influential Hotel Trades Council union, which has donated over $700,000 to various council members since 2021.
According to HONY representatives, the bill would only serve to increase room rates in New York City, where customers already face some of the highest hotel prices in the nation. They believe it could put them out of business entirely. The proposed law includes arbitrary and burdensome operational mandates, severely limiting the owners’ ability to effectively manage their businesses. Furthermore, it disregards the unique needs of the nearly 700 hotels in the city and threatens the flexibility required for successful operations in a highly competitive market like New York City.
The new group plans to collaborate with other industry associations, such as the Hotel Association of New York City and the Real Estate Board of New York. It will also create an “Annual Hospitality Scorecard” to grade each elected official in New York based on their support or opposition to industry priorities, using this information to inform the public.
Menin has already made some adjustments to the bill after facing widespread backlash, including a carve-out that ensures hotel restaurants, bars, and nightclubs are not affected. However, Vijay Dandapani, president and CEO of the Hotel Association of New York City, has criticized these revisions as still unacceptable.
The bill currently appears to have enough votes to pass the council but not the 34 needed for a potential mayoral override. Mayor Eric Adams has yet to comment on the legislation.
Hotel owners and industry associations argue that the bill is detrimental to both the hospitality industry and its workers, with Kevin Carey of the American Hotel & Lodging Association urging council leaders to withdraw the proposed legislation. However, HTC spokesman Austin Shaffran remains confident that the City Council will support the bill despite opposition from hotel owners.
As the battle between New York’s hotel owners and the City Council continues to heat up, it remains to be seen how the situation will play out and what impact this legislation could have on the city’s thriving hospitality sector.
