Hawaii lawmakers have introduced a bill aimed at restricting developers from converting hotel rooms into condo units.
Members of Honolulu City Council tabled a proposal requiring developers to apply for permits if they wish to convert hotels with at least 100 rooms.
The bill’s aim is to ensure there remains adequate room capacity for Honolulu’s tourism industry.
The law would allow the city to reject a permit application if there is a "significant and negative" effect on room availability in a hotel, which it loosely defines as reducing the number of hotel units by over 20%.
City officials say condo conversions are in part responsible for the net loss of 8,000 hotel rooms over the last decade.
Importantly, the proposal is also designed to protect hotel workers’ jobs.
Employers must give extra notice to staff affected by a condo conversion project and are required to keep all workers employed for a transition period of 90 days.
