Hotel Association of NYC Launches Campaign to Save City Hotels

NEW YORK, NY (01/19/2021) (readMedia)-- Today, the Hotel Association of New York City (HANYC) launched a full-scale campaign to save the city's hotels, including TV, radio and digital ads. The campaign, called "Key to NYC", will engage New Yorkers in order to get help from City Hall for the devastated hotel industry and its workers during the COVID-19 crisis.

The hotel and hospitality industries have been the hardest hit parts of New York City's economy over the last year. More than 200 New York hotels have closed during the pandemic, leaving tens-of-thousands of New Yorkers out of work. Before the pandemic, the hotel industry employed more than 50,000 people who are mostly immigrants and people of color, raised $3.2 billion a year in City tax revenue, and added $22 billion annually to our economy.

"The hotel industry has been utterly devastated by the pandemic. Hotels need critical, immediate help from City Hall to stay open and to protect the livelihoods of tens-of-thousands of New Yorkers and their families," said Vijay Dandapani, President and CEO of the Hotel Association of New York City (HANYC). "We are not asking for a tax break or a handout; we are merely asking not to be penalized for late tax payments so that we can keep our doors open and keep workers employed. If CIty Hall can give us a small amount of relief, we will not only save our industry and its workers, we will also be ready to take full advantage of the recovery when visitors return at full volume to our great city. If hotels are open for business, New York is open for business--and our tourism industry and city can thrive again."

According to a Manhattan Lodging report, approximately 61,450 Manhattan hotel rooms (representing 58 percent of total inventory) are closed. Pre-COVID, hotels had a disproportionately large property tax burden compared to other properties. Now, with the same disproportionately large burden put on hotels and industry revenue down more than 80 percent, the taxes due are exceeding revenue at many hotels. And property tax debt interest accrues at an annual rate of 18 percent on late payments, which would just accelerate hotel closures. So the hotel industry is asking for that penalty to be suspended during the pandemic.

"The pandemic has forced me to shut down one of my two hotels and painfully lay off dozens of staff. During 9/11, the city government stepped in and ensured hotels like mine didn't shut down for good. Now, we are facing the biggest crisis yet, and we are simply asking the NYC government to step up and keep workers like mine employed by giving hotel owners a little room to breathe. What's New York City without its hotels? We cannot afford to find out," said John Fitzpatrick, owner of the Fitzpatrick Hotel Group New York.

"For almost a year, since COVD-19 first hit NYC, I have been in and out of work as a bartender. I have a family and a mortgage to pay. I am scared for my future. We need the NYC government to help hotels so good paying jobs like mine exist when we're out of this pandemic and beyond," said Bilah Yayla, a bartender at Fitzpatrick's Grand Central hotel.