The New York City Council approved a controversial new hotel regulation bill on Wednesday, requiring hotels to obtain licenses and comply with stricter safety and staffing standards.
The bill, known as the Safe Hotels Act, passed with a 45-4 vote, after significant revisions that gained the support of many hotel owners who had initially opposed it.
Under the new law, hotels must pay a $350 licensing fee every two years and face fines of up to $5,000 for violations. The legislation mandates that hotels staff front desks 24/7, provide panic buttons for employees, and train staff to recognize signs of human trafficking. Hotels with 100 rooms or more are prohibited from subcontracting most services, a provision aimed at addressing poor working conditions and wage theft.
Council member Julie Menin (D-Manhattan), who sponsored the bill, emphasized its importance for public safety, citing NYPD reports of 39 murders in hotels since 2009 and over 14,000 criminal complaints between 2019 and 2023. She pointed to cases like the 2021 homicide at the Umbrella Hotel in Queens, which the city struggled to close due to legal limitations. The new law would allow quicker action against such “bad actors.”
The bill faced criticism from some in the industry. Kevin Carey, interim president and CEO of the American Hotel & Lodging Association, argued that larger hotels were unfairly targeted and that the law would harm small and minority-owned businesses. He warned that the new regulations could increase costs for travelers and reduce tax revenue for the city.
Despite the opposition, the legislation’s passage was secured after a deal between two major industry groups, the Hotel Trades Council and the Hotel Association of New York City. A key compromise allowed smaller hotels, particularly non-union establishments with fewer than 100 rooms, to continue subcontracting for certain positions.
Mayor Eric Adams is expected to sign the bill into law.
With input from New York Post and the Associated Press.
