New York City Hotel Workers Just Secured a Groundbreaking Deal — With Housekeepers Set to Earn Over $61 an Hour

New York City hotel workers just locked in what their union is calling the biggest wage increases in its history. The Hotel Association of New York and the Hotel and Gaming Trades Council reached a tentative deal on a new eight-year contract covering roughly 27,000 workers across more than 200 hotels in the city.

Under the agreement, wages for non-tipped workers will increase by $21.20 over the life of the contract, averaging more than 5% annually — a pace the union says is more than 2.5 times the average raises in the previous agreement. By the end of the contract in 2034, room attendants and other non-tipped workers will be earning six-figure salaries, with housekeepers specifically on track to surpass $61 per hour.

The deal goes well beyond base pay. Hotels will increase their contributions to the union's Health Benefits Fund by three percentage points, from 27.25% to 30.25% of payroll, a boost the union values at nearly $65 million per year. Free healthcare for members and their families is preserved for the full eight years.

New benefits also include housing and childcare funds financed by the hotels, additional paid time off, fully paid family leave for new parents, and paid time off to vote in all elections.

The contract comes as hotel labor costs continue to climb nationwide. In Los Angeles, a proposed $30 minimum wage for hospitality workers has generated significant pushback from hotel operators. The NYC deal could set a precedent that reverberates through the industry, particularly for resort and hospitality brands operating in high-cost markets.

For all-inclusive operators like Sandals and Hyatt Inclusive Collection, rising labor costs in the U.S. could further tilt the competitive balance toward Caribbean and Mexico-based properties, where all-inclusive pricing already absorbs staff costs into the rate.