A new group of South Asian immigrant hotel owners is fighting against a bill they say would “destroy” the Big Apple’s hospitality industry and destroy their American dream.
Indian-Americans in the New York City Minority Hotel Association, which owns about 120 nonunion hotels, most of them outside Manhattan, are fighting a controversial plan that would prohibit them from outsourcing jobs such as housekeeping.
“Our coalition embodies the American dream – hard-working immigrant families who came to this country, seized the opportunity to build their small businesses and, over decades, created a community within the walls of their hotels,” said Mukesh Patel, a New York hotelier and founding member of the group who moved here from India 30 years ago.
“As currently imagined, (the bill) has the potential to undo all of that progress, put thousands of people out of work and close small businesses across the city.”
He said the Safe Hotels Act was an attempt to force hotels to unionize while driving up costs.
The bill, sponsored by Democratic City Councilwoman Julie Menin of the Upper East Side, would require hotels to apply for and reapply for a license each year, and the city’s Department of Consumer and Worker Protection would be responsible for regulating the hotels.
The measure, supported by the hotel workers’ union – the Hotel Trades Council – would ban hotels from outsourcing cleaning and reception work to private companies.
“I don’t think most council members are aware of the consequences this bill will have on the hotel industry,” Patel said.
“We have not fully recovered from the COVID pandemic. We are still struggling.”
He said the new licensing authority could lead to unjustified license withdrawals and that banks would no longer lend to hotels due to the uncertainty.
Patel also said that the city, state and federal governments – as well as HTC – should outsource certain services to private companies and that hotels should have the same opportunity.
“Where is the interest here? This is simply not right,” he said.
Hoteliers said workers, whether directly hired or in contact, have already completed sex trafficking awareness training and other training.
“Our industry supports thousands of families across New York City. Many of them are hard-working immigrant and minority families hoping for stability in this great city. And yet the City Council is willing to play politics with their livelihoods,” says Nikul Patel, a New York City hotel owner and founding member of the NYCMHA who is not related to Mukesh.
Menin defended her bill, citing support from the city’s five district attorneys and Police Benevolent Association, who say the stricter regulations would increase safety and reduce crime such as sex trafficking in and around hotels.
“With 39 murders in hotels and 14,000 complaints to the NYPD (since 2019), there is a reason why the five district attorneys and the PBA support the Safe Hotels Act and why cities across the country are successfully licensing hotels,” said Menin, who is vying to become the next council speaker.
HTC agreed with Menin.
“An association formed by a hotel operator whose hotels have generated hundreds of 911 calls is exactly why we need legislation to improve safety and health standards,” said HTC spokesman Austin Shafran. “Some business owners don’t want to be held accountable, but hotel employees, guests and neighbors deserve better.”
