NEW YORK CITY, September 12, 2024—The Safe Hotels Act, proposed by the New York City Council, would negatively impact the city's hotel industry, which contributes millions annually to the local economy, according to speakers at an industry rally held Thursday, September 12, at New York City Hall. AAHOA (Asian American Hotel Owners Association) joined other industry associations and organizations to oppose the proposed Safe Hotels Act (Int. No. 991).

If passed, this act would prohibit hotels from operating without an additional license and prohibit using subcontractors for core functions such as housekeeping, front desk, and security.

Among industry leaders, AAHOA Treasurer Rahul Patel represented AAHOA and voiced concerns on the proposed act with support from AAHOA Northeast Regional Director Preyas Patel and AAHOA Mid-Atlantic Regional Director Mahendra (MZ) Patel.

"The Safe Hotels Act was not created in good faith, or the City Council would have reached out to us and our members," Rahul Patel said. "This act [City Council] is trying to pass will destroy our livelihoods. For us, this bill not only hurts small businesses but will hurt thousands of hospitality employees in the New York City area."

He noted that in the Manhattan area, hotels contributed over $2.3 million in state and local taxes in 2021 and $7.2 million to the GDP. These numbers demonstrate how vital these small hotels are to the local economy.

"I extend my deepest gratitude to Rahul Patel, our hospitality leaders, and the hundreds of supporters who rallied today," said AAHOA Chairman Miraj S. Patel. "It is my sincere hope that the City Council will listen to our voices and collaborate with us to find balanced solutions that benefit everyone. AAHOA stands ready to partner in this process."

"The Safe Hotels Act, as it stands, poses a serious threat to our members' businesses and their livelihoods and threatens to undermine that economic engine at a time when the industry is still recovering from unprecedented challenges," said AAHOA President & CEO Laura Lee Blake. "AAHOA is proud to stand with our industry partners in opposing this misguided proposal. We need policies that foster growth and job creation, not ones that put small business owners and their employees at risk."

About Int. No. 991 (Safe Hotels Act):

Int. No. 991 would impose onerous and unnecessary staffing requirements on NYC hotels, which could result in the closure of small businesses. This bill mandates other rules that would needlessly disrupt hotel operations and require some hotel owners to divest their properties and exit the industry. 

The proposed bill:

• Creates a new hotel licensing structure that the city cannot afford to properly implement.

• Mandates that hotel owners must be the direct employer of all housekeeping, room attendance, and maintenance staff.

• Prohibits all New York City hotels from subcontracting key operational functions, directly harming small New York City businesses.

• Creates one-size-fits-all minimum staffing and cleaning mandates that ignore individual hotel needs and guest preferences.

• Would cause thousands of New York City hotel workers to lose their jobs.

• Duplicates an existing state human trafficking law that all New York state hotels are already required to follow.

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About AAHOA | AAHOA is the largest hotel owners association in the world, with Member-owned properties representing a significant part of the U.S. economy. AAHOA's 20,000 members own 60% of the hotels in the United States and are responsible for 1.7% of the nation's GDP. More than 1 million employees work at AAHOA Member-owned hotels, earning $47 billion annually, and member-owned hotels support 4.2 million U.S. jobs across all sectors of the hospitality industry. AAHOA's mission is to advance and protect the business interests of hotel owners through advocacy, industry leadership, professional development, member benefits, and community engagement.