Grand Hyatt And Hilton New York Are Re-Opening. Can You Guess Why?

The New York Hilton and Grand Hyatt New York are both re-opening, the former on October 4 and the latter November 1.

While there was a logic in providing services to travelers during the summer, preparing to do so as a hotel heads into Northeast winter – traditionally a down time for business to begin with – may seem odd. And indeed the decision to do so now has nothing to do with anticipated return of business travel. Instead, there’s a simple reason to re-open – and to do so no later than November 1.

The news comes just days after the City Council passed a bill requiring hotels that either closed or laid off 75 percent of their staff during the pandemic to provide $500 per week in severance pay to service employees for up to 30 weeks.

Hotels can exempt themselves from the mandate by recalling at least 25 percent of workers by Oct. 11 and reopening by Nov. 1.

The Hilton faced expenses under this law of up to $16.5 million and will recall 30% of its workforce to avoid the outcome. The Grand Hyatt will bring back the minimum 25% of its workforce even though it’s slated to be torn down.

Grand Hyatt New York

The new city law is a way for unions to extract funds from hotel owners, whether the hotels are open or not. Even if the hotels operate at a loss, they expect to lose less by opening than by complying with this new law. However owners can take solace in the fact that the City Council will protect them from future competition so future monopoly profits should more than make up for this expense.

Maybe the hotels can make up the losses in destination fees?

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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  1. Just when you think NYC can’t get more insane and anti-business, they implement this extortionist mandate. NYC deserves everything it gets.

  2. My early November reservation at Andaz Wall St was moved to Grand Hyatt. Apparently Andaz WS made a different calculation and will remain closed past 11/1. Not a change I was happy about, but it was the only one they were willing to honor at my original rate (as opposed to the same brand I booked blocks away from GH). Guess now I know why.

  3. Why isn’t the Hyatt simply removing the term “hotel” from its business if it plans to redeveloped anyway?

  4. Out will come the NYC-haters, Union-haters, Democrat-haters, Hyatt-hater/Hilton-shills, every self-styled libertarian, plutocrat-wannabe, and anti-immigrant hick (did I miss any?) to damn this over-reach by the City and pound on just why this means the impending end of everything holy—– but I actually kind of admire a city that tells employees to get vaccinated or quit, and its businesses to get back to business or take care of their employees properly, or there will be a whopping big bill to pay. About time. I was in NY just 10 days ago, and every SMALL business we visited that isn’t going to become a casualty was making every effort to restore things. It’s about time the big employers did too, so that EVERYBODY can hope the giant ship can be turned back toward “normal” even if it moves slowly.

  5. Oh the magic that is produced when corrupt local officials team up with the corrupt unions that funnel cash to them. Economic insanity.

  6. Just another sad attempt by the corrupt and failed leadership of NY to make it look like they are recovering when they are not. There are many like me, native to the area that see how low this city will go, how they will force employees that sacrificed during the pandemic and serves the community as fireman or police or healthcare or education into unemployment because of misguided and unnecessary vaccine mandates, this is the kind of people that run NY and I’m not alone when I say not an dollar will be spent out of my pocket to support NY again in my lifetime unless there is change. I agree they small businesses are working hard but large businesses have to close locations when demand falls off and the city is doing nothing to help bring people back, in fact they are doing everything to keep them away…look at the crime stats!!

  7. “admire a city that tells ….. its businesses to get back to business or take care of their employees properly”
    Yikes! No wonder cities like Miami are eating NYCs lunch, talent and otherwise.

  8. Mark Rascio – so clear you don’t live in the City and I doubt you’re a “native” New Yorker. I’m not even getting Staten Island vibes off of you – maybe Long Island but I doubt it. No New Yorker calls it NY and nobody here other than a few discrete pockets is against reasonable vaccine or test mandates. And no New Yorker is clutching their pearls about the increase in crime. We all remember what the City was like when it was truly unsafe. This ain’t that and if you actually had real ties to the City here you’d know.

    Nice try.

    So vote with your dollars –
    completely fair. You’d clearly never cut it as a resident, and the City has and always will draw people. We don’t need you waddling around Times Square unvaccinated gawking at the Planet Hollywood.

  9. Other cities do this too…. make you pay a fee to the city of you do not rent out your store front… this is to keep the place going and not become a desolate place like Times Square was back in the 70s. Or the Combat Zone in Boston. SanFrancisco has the rule where if you do not rent out then you pay the city if I recall… so many will not wait for that $$$$ and rent it out for $$$, At last some people are employed, some sales tax is collected and some foot traffic is done

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