The hotel made its decision after being approached by United Against a Nuclear Iran, an American organization working to raise support among the public against companies and bodies doing business with Iran.
Howard Rubenstein, a spokesman for Helmsley Properties, said that "as soon as Helmsley corporate management learned of the possibility of either the Iranian mission or President Ahmadinejad holding a function at the New York Helmsley Hotel, they immediately ordered the cancellation of that function.
"Neither the Iranian Mission nor President Ahmadinejad is welcome at any Helmsley facility. The Helmsley organization is grateful to United Against Nuclear Iran for bringing this matter to its attention so that appropriate action could be taken."
UANI President Mark Wallace welcomed the decision, saying that American companies must realize that conducting business with Iran legitimizes a cruel dictatorship, indirectly helping develop a nuclear weapon.
Another company which has decided to take private measures against Iran is General Electric (GE), which signed UANI's Iran Business Declaration, affirming that it does not and will not conduct business in Iran or other countries designated as State Sponsors of Terrorism.
Wallace applauded the decision, saying that "General Electric recognizes the danger of a nuclear-armed Iran and by signing the Iran Business Declaration, GE sets a strong example of corporate responsibility. UANI calls on the international business community to follow GE's example."