A group of South Asian hotel owners in New York City are opposing a bill they say could destroy the city’s hotel industry and threaten their American dream. The Indian-American members of the New York City Minority Hotel Association, which owns about 120 non-union hotels mostly outside Manhattan, are opposing the Safe Hotels Act, which would prohibit the outsourcing of 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,” Mukesh Patel, a New York hotelier and founding member of the group, was quoted as saying by the New York Post. Patel immigrated to the United States from India 30 years ago.
“As currently imagined, (the bill) has the potential to undo all that progress, put thousands of people out of work and close small businesses across the city,” he added.
The bill, sponsored by Upper East Side Democratic Councilwoman Julie Menin, would require hotels to apply for a license each year, with the city’s Department of Consumer and Worker Protection overseeing the regulations.
The bill, supported by the Hotel Trades Council (HTC), would also prevent hotels from outsourcing cleaning and reception activities to private companies.
Patel criticized the bill, saying it was an attempt to force hotels to unionize, which he said would increase costs and harm the industry.
“I don’t think most council members realize 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,” the New York Post reported.
Patel also expressed concern that the new licensing authority could lead to unjustified license revocations, which could make banks hesitant to lend to hotels due to increased uncertainty.
He pointed out that other government agencies and the HTC outsource certain services to private companies and argued that hotels should have the same opportunity.
Nikul Patel, another founding member of the association, emphasized that the hotel industry supports thousands of families across New York City, including many immigrant and minority families seeking stability.
He criticized the city council for making politics with the city’s livelihood.
In defense of her bill, Councilwoman Menin emphasized the support of the city’s five district attorneys and the Police Benevolent Association, who believe the stricter regulations will increase safety in and around hotels and reduce crime, including sex trafficking.
“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,” Menin told the New York Post.
HTC echoed Menin’s sentiments. Spokesman Austin Shafran said, “An association founded by a hotel operator whose hotels have generated hundreds of 911 calls is exactly why we need legislation to improve safety and health standards. Some business owners don’t want to be held accountable, but hotel employees, guests and neighbors deserve better.”
