NEW YORK CITY, October 10, 2024—AAHOA (Asian American Hotel Owners Association) joined forces with industry leaders and organizations on Wednesday, October 9, at New York City Hall to rally against the proposed Safe Hotels Act (Int. No. 991-B). The act, introduced by the New York City Council, has drawn widespread criticism for what many see as an attempt to impose unionization on the hotel industry. This rally follows a similar demonstration last month, which drew over 1,500 attendees in opposition.
The proposed act would require hotels to obtain an additional operating license and prohibit the use of subcontractors for core functions such as housekeeping, front desk services, and security—restrictions that many hoteliers believe would negatively impact small, minority-owned businesses.
Key voices included AAHOA Northeast Regional Director Preyas Patel, AAHOA Past Chairwoman Jagruti Panwala (2019-2020), former AAHOA Young Professional Director Eastern Division Purvi Panwala, and Mitesh Ahir, an AAHOA Member from New York who all addressed the New York City Council following the event.
“So proud of the strong leaders in our industry who spoke out against the union-sponsored Unite Here legislation that threatens to devastate New York City’s travel and tourism sector,” said AAHOA Chair Miraj S. Patel. “If passed, this could force many NYC hotel owners to shut their doors, crippling the local industry and eliminating thousands of jobs. We cannot allow this to happen—we must protect the future of hospitality and the livelihoods it supports.”
“It is disheartening so many council members who claim to care about small and minority businesses would be willing to destroy our small, minority-owned hotels because we cannot afford the union’s demands,” said Preyas Patel. “Our hotel owners and workers form a tight-knit and supportive community that is an important part of the City’s tourism and overall economy – not to mention a vital resource to moderate-income tourists and New Yorkers with visiting family members.”
Since the legislation was introduced in July, AAHOA Members have contacted the New York City Council to voice their opposition and ask the council to reconsider the proposed act.
“When considering a subcontractor, we not only inquire about their current training and availability, we also still provide them property-specific training, exactly the same as direct hire employees,” said Jagruti Panwala, a first-generation hotelier who owns multiple hotels across the United States, including a 60-room hotel in the Bronx. “This is only prudent to minimize liability and protect our investment, not to mention to ensure anyone who works in our hotel helps drive guest satisfaction. We are not alone. Subcontractors are options for many other industries; why remove them entirely for hotel operators?”
“It continues to get difficult to maintain employees in a competitive workforce market,” said Purvi Panwala, co-founder of a hotel ownership group specializing in boutique hotels, including one in Brooklyn. “With the challenges we face to maintain day-to-day operations and offer our guests the best experience possible, we have turned to subcontractors for assistance.”
“Requiring us to further regulate our operations and limit our flexibility in management and employee contracts would only increase the already high room rates in the city and surrounding area,” said Mitesh Ahir, an AAHOA Member from New York. “Forcing us to increase our rates would severely diminish our overall occupancy, thus lowering the overall revenue of the hotel businesses, which would then lead to lower tax collection. Therefore, this bill does not only hurt our business but also hurts the states and city’s budget allocation.”
