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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.

The bill advanced by Councilwoman Julie Menin would ban hotels from contracting out critical services or push hotels to directly employ most workers with union contracts.

The proposed law is micro-management run amok, hoteliers said.

“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 average cost of a hotel in Gotham is about $300 a night, trailing only Boston, according to cheaphotels.org.

More than 150 of the city’s hotels have been converted into migrant shelters, reducing the number of available rooms, which is also driving up the already sky high room rates.

The proposed new red tape has the backing of the powerful Hotel Trades Council union.

Of the city’s 700 hotels, 400 are non-union.

The bill would require a hotel to obtain a one-year license and apply for renewal every year from the Department of Consumer.and Worker Production.

The one-year leash and even temporary suspensions could jeopardize financing of hotels, industry sources said.

Currently, city hotels can open after getting a certificate of occupancy from the Buildings Department and safety approvals from the Fire Department — but they are not required to obtain an operating license, as is the case in many other cities.

Other industries in New York, such as restaurants are licensed, backers of the bill note.

Currently, city hotels can open after getting a certificate of occupancy from the Buildings Department and safety approvals from the Fire Department — but they are not required to obtain an operating license, as is the case in many other cities.

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.”

That would mean employees have to have a union contract or be represented by a union, industry sources said.

Menin, and the Hotel Trades Council, which is lobbying for the bill, defended it as pro-safety, pro-consumer and pro-worker.

“Licensing, quite frankly, is one of the most powerful and effective tools we have to regulate business.” Menin said. “Hotels are an important economic driver of this city and we want to make sure that they are properly regulated in a way that benefits all.

“My bill is about ensuring all hotels in our city are operated in a responsible manner by charging the bad actors that are operating in our city,” said Menin, who served as consumer affairs commissioner under former Mayor Bill de Blasio and chairs the council’s Consumer Protection Committee.

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.

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