Proposed City Council Legislation To Require Hotels To Obtain a License To Operate

On July 18, 2024, the City Council introduced legislation (Int. No. 991) that would require hotels to obtain a license in order to operate in New York City. The stated aim of the legislation is to address what is described as public safety concerns around hotels. The license, which would have a two-year term, would, as proposed, require hotels to (i) maintain continuous front desk coverage and, for hotels of 100 or more rooms, continuous security guard service; and (ii) employ directly (i.e., not subcontract) their core employees, such as housekeeping, front desk, room attendants, engineering employees and food service workers at restaurants directly connected to hotels. All hotels would be required to maintain the cleanliness of each guest room, defined to include (among other things) daily cleaning, and to train employees in human trafficking recognition. And they would be prohibited from retaliating against employees who report on activity that violates the conditions of the license. The legislation would also require the Department of Buildings (DOB) commissioner to make an initial determination relating to the “fitness” of the hotel owner and require the license be obtained prior to the DOB’s issuance of a certificate of occupancy (CO). The CO would also expire upon the expiration, suspension or revocation of the license. Hotels that violate the license conditions would be subject to civil penalties.

The proposed legislation, which has the backing of the Hotel Trades Council union, has encountered significant pushback from the hotel and real estate industries. Criticism from the industries includes the prohibition of subcontracting out operations, which the industries claim would raise operating costs. In response to the pushback, the July 29, 2024 public hearing was postponed, and an amended bill was released on August 2, 2024. The amended bill no longer requires the DOB commissioner to make an initial determination relating to the fitness of the hotel owner, and the issuance or expiration of the CO is no longer related to the issuance or status of the license. The amended bill also no longer applies to food service workers at restaurants directly connected to hotels, and no longer requires security guards to be directly employed by the hotel. See the revised legislation here: Proposed Int. No. 991-A – 8/2/24  

We will continue to monitor and provide updates on the proposed legislation. Please contact any member of the Land Use Department for more information.