NYC hoteliers warn City Council's new 'nuclear bomb' rules will drive up lodging prices

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NYC hoteliers warn City Council's new 'nuclear bomb' rules will drive up lodging prices
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City lawmakers are pitching new hotel rules that could drive up room rates in the Big Apple – a move officials say would be a“nuclear bomb” on the hospitality industry.“This is like a nuclear bomb. It will destroy a major segment of the industry. This is a bazooka to kill a gnat,” said Vijay Dandapani, president and CEO of the Hotel Association of New York City.

The measure states that hotels can only contract out services to one management company and can’t subcontract out work unless “a majority of all core and critical employees” — such as front desk, maintenance, cooks, food handlers and security are “covered by a collective bargaining agreement.” She said reported crimes have increased dramatically at hotels over the past two decades, and claimed the lack of oversight and accountability are part of the problem.“At the beginning of 2021 New York City experienced its first homicide of the year at the Umbrella hotel in Kew Gardens — despite numerous complaints made by community members about this hotel prior to the murder,” Menin said.

The Hotel Trades Council insisted that hotels that operate properly and don’t skim on service and security have nothing to worry about. Menin said Wednesday she has heard from hoteliers who have raised legitimate concerns, and she already agreed to revise the bill regarding staffing requirements.

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