Proposed New York City Hotel Regulation Threatens to Push Prices Even Higher

With prices skyrocketing, the city is weighing whether to regulate hotels further by barring them from hiring contracted workers.

by Emma Camp
Reason.com

Since banning most short-term rentals in 2023, New York City has seen hotel prices skyrocket. Now the city is considering a measure that would almost certainly force prices even higher.

The bill, proposed by New York City Councilwoman Julie Menin, targets non-union hotels, prohibiting hotel owners from hiring contracted workers for many positions, such as housekeeping, security, and bartending. The measure would require hotel owners to directly employ these workers rather than rely on cheaper subcontracting services.

Further, the proposed law would also require all hotels to obtain a license in order to operate. As a condition of licensing, hotels would need to hire a 24-hour security guard, who is also licensed.

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