Queens Hotels, BP Richards + CMs Demand City Provide Hotels Relief

QUEENS, NY (02/17/2021) (readMedia)-- Today, Queens elected officials including Borough President Donovan Richards, and Council Members, Koo, Koslowitz, Adams, Van Bramer, Vallone, Constantinides, Ulrich, Grodenchik and Moya, announced their support of HANYC (The Hotel Association of NYC)'s campaign to save NYC Hotels. They join a long list of other elected officials including Borough Presidents Adams, Brewer, and Diaz Jr, and countless other Council Members calling for the City to provide immediate relief for hotels as the industry and its workers face closures and massive layoffs due to COVID-19. The campaign includes TV, radio and digital ads.

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.

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 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 thrilled to have the support from so many great Queens elected officials behind our campaign, so far. 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."

"Ever since the pandemic hit New York, our hotel has struggled to stay open. We've had to furlough most of our staff simply because there are not enough business or tourist travelers coming in to keep our doors open for much longer. This a preventable travesty. City Hall must step up and invest in hotels immediately. New York City's recovery -- and thousands of good jobs -- depends on it," said Ed Staniszewski, General Manager at the Sheraton Laguardia East Hotel.

"With more hotel rooms than any other borough outside Manhattan, the economic independence of thousands of Queens families rely on Queens' vibrant tourism and hospitality industry. But any potential large-scale closure of hotel properties across the city will only exacerbate the real and deep threats of housing, food and employment insecurity our families - especially families of color - have faced for months," said Queens Borough President Donovan Richards. "Ensuring our hotels have the capital to keep their doors open is a direct investment in our families and our communities - an investment that must be made immediately."

"New York City is a tourist destination and the hotel industry plays a large role in our economy," said Council Member Adrienne Adams. "Unfortunately, COVID-19 has impacted every sector in New York City and the hotel industry is among those hardest hit. We must work collectively to provide relief and preserve this industry."

"Suspending interest rates on late property tax payments is a tool that will help hotels eventually reopen and continue employing the industry's 50,000 New Yorkers," said Council Member Paul A. Vallone.

"A year into the COVID-19 pandemic the need to cancel rent and suspend interest rates on property tax is greater. Hotels, small businesses, and cultural venues shouldn't be forced to pay while not able to continue doing business," said Councilmember Jimmy Van Bramer.

"For New York City to maintain its status as the tourism and business capital of the world, our hotels must survive this pandemic. The relief HANYC is calling for would go a long way toward helping our hotels continue to play this vital role in our economy and keep thousands of New Yorkers employed," said Councilman Bob Holden.

"I am proud to support this campaign, which will give the hotel industry - and the thousands of New Yorkers it employs - much-needed relief. Like so many of the City's businesses, hotels are hurting," said Councilman Eric Ulrich. "By suspending the 18 percent interest rate on property taxes paid late for hotels impacted by COVID-19, we can help hotels recover from this economic crisis and bring jobs back to New York City."

"Unquestionably, the hotel industry in New York is under extreme duress. New York needs a vibrant hotel industry in place after the Covid pandemic passes. There is no question that hotel properties have decreased in valuation, and that a reassessment by Finance is both reasonable and necessary. On the question of waiving penalties for late property tax payments: this is not a question of an industry unwilling to pay property tax; they have lost the ability to pay the tax. When the industry is back on its feet back taxes will be collected. In the meantime, the 18% penalty needs to be waived," said Councilwoman Karen Koslowitz.

"I applaud and support the Hotel Association of New York City's efforts to save New York City's hotel industry and the tens of thousands of jobs that the hotels provide. New York City's restaurants, attractions, and cultural institutions are part of what makes our city great, attracting tourists from around the world who greatly contribute to the local economy. We must attempt to ensure that these attractions, as well as the hotels that accommodate the tourists visiting our city, survive the current economic crisis caused by the pandemic. New York City's hotel industry is vital to our economic recovery and our road back to normalcy," said Council Member Barry S. Grodenchik.