AHLA Criticizes New York City’s New Hotel Licensing Law as Disruptive

The American Hotel & Lodging Association (AHLA) has expressed significant concerns over a new hotel licensing law passed on July 18, 2024, in New York City, labeling it as “disruptive” and potentially damaging to the city’s hotel industry and wider economy. The law, recently introduced by the New York City Council, mandates additional licensing requirements for hotels, specifically impacting operational flexibility.

Under the new law, non-union hotels will be prohibited from using subcontractors for core functions, fundamentally altering their business models. Additionally, the law redefines the relationship between hotel owners and operators by classifying them as joint owners, introducing a complex layer of operational and legal implications.

Kevin Carey, the Interim President & CEO of AHLA, strongly criticized the legislation, stating, “This abrupt and destructive bill would permanently alter how hotels operate and threaten the jobs of thousands of New Yorkers. The potential for massive job losses, hotel closures, and significant economic downturn is real. This is a critical issue that impacts not only hotels but also small business retailers, restaurants, and other service providers reliant on a thriving hotel sector.”

Carey also highlighted the timing and method of the bill’s introduction, accusing the council of “policy malpractice” for fast-tracking such a significant proposal without adequate industry consultation during a traditionally low-engagement period in summer. He urged for a reconsideration of the bill, emphasizing that the proposed one-size-fits-all approach does not account for the diverse needs of nearly 700 hotels in the city. He concluded by calling for a more considered and inclusive approach to avoid the widespread negative consequences forecasted by the association.