In an interview with THE CITY Friday, Councilmember Ben Kallos (D-Manhattan), chair of the city contracts committee, questioned Crewfacilities’ $27 per room, per night fee, noting that the industry norm for such a booking fee is typically 10% of the room rate. That would come out to $12 to $16. As of last week, Crewfacilities had charged $2.5 million in these fees.
City Councilmember Ben Kallos (D-Manhattan) Photo: William Alatriste for the New York City Council
Kallos called on OEM to cancel the contract, estimating that between the $27 fee and the $71 per-day meal charge, Crewfacilities could be charging taxpayers $3,000 per month — above the cost of hotel rooms — for each guest.
“At the height of the pandemic we were desperate for hotel rooms and we got ripped off by a contract with $27 overhead,” he said. “We can and must do better by cutting out the middleman and going directly to the hotels. We can use the savings to fund essential services for youth and seniors this summer.”
As for the cost of an $18 breakfast, he added, “That better be one fancy breakfast. If it’s $18 for a bagel and coffee, that’s expensive even for New York City.”