Hotel industry leaders in Los Angeles are raising serious concerns about a city-mandated minimum wage increase, warning it could lead to a significant reduction in hotel room availability just as the city gears up to host major global events like the 2026 FIFA World Cup and the 2028 Summer Olympics. The policy, signed by Mayor Karen Bass, requires hourly wages to reach $30 by 2028, a move industry representatives believe will exacerbate staffing challenges and negatively impact the local economy.
Members of the Los Angeles hotel industry are 'sounding alarm bells' as they struggle over a city-mandated minimum wage hike signed into law by Democratic Mayor Karen Bass. Industry leaders warn the policy could lead to a severe shortage of room availability just as the city prepares to take the world stage.
'We are absolutely sounding alarm bells. If the city doesn't start working with the business community, by 2028, things will be very different in terms of room availability at hotels,' Rosanna Maietta, president and CEO of the American Hotel and Lodging Association told Fox News Digital Wednesday. The timing is critical. Los Angeles will host a string of high-profile global events, including the 2026 FIFA World Cup matches at SoFi Stadium, the 2026 U.S. Women’s Open Championship and the 2028 Summer Olympics. Maietta warned that for these events to succeed, hotels must be fully staffed, a task made increasingly difficult by rising labor costs. CALIFORNIA'S $20 MINIMUM WAGE FOR FAST FOOD WORKERS LED TO 'NEGATIVE OUTCOMES,' RESEARCHERS SAY 'We've already seen that impact. I think about 100 restaurants have closed in the last year. If you think about just 6% of workers who have lost their jobs in less than a year, times that by four more years of this. It's just going to continue to have a negative ripple effect across the Los Angeles community,' she said. The phased-in mandate requires a massive pay hike for airport and hotel workers. The law, signed by Mayor Bass last year, requires hourly wages to increase by $2.50 annually until they reach $30 per hour by 2028. A recent AHLA report suggests the mandate has stripped the industry of the flexibility needed to navigate fluctuating market conditions. According to the data, the policy has already led to: RESTAURANTS WARN TIPPED WAGE CHANGES COULD RAISE PRICES, CUT JOBS, RESHAPE DINING EXPERIENCE While Mayor Bass did not respond to Fox News Digital’s request for comment, City Councilmember Hugo Soto-Martínez, a staunch supporter of the wage hike, dismissed the AHLA’s findings. 'Billionaire corporations spent millions of dollars trying to avoid paying their workers and providing them healthcare, and they failed,' Soto-Martínez told Fox News Digital Monday. 'Now, instead of paying their workers a living wage, they’re pouring even more money into misleading studies, ignoring independent findings that paying workers fairly would provide a massive boost to our economy.' However, the AHLA noted that the study was not merely a private initiative. Under a 2015 ordinance, the city is required to commission an economic study every three years to review the state of the local economy. The city contacted the AHLA to conduct this specific analysis and provided the questions used to gather member responses. The AHLA is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide. Its methodology stated it was a 'member survey of Los Angeles hotel operators and owners' that featured '16 questions in multiple-choice, select-all-that-apply, and ranking formats.' 'The city was required to do this analysis, and so we complied,' Maietta said, noting the irony of the councilmember’s criticism. 'Our hotel employees in Los Angeles are paid some of the highest wages in the country, and we're proud of that. It’s not just about wages; we provide a pathway to growth and opportunity.' BUSINESS OWNER SAYS 'WE DON’T HAVE MONEY' AS NYC OFFICIALS PROPOSE MINIMUM WAGE HIKE: REPORT The report found that none of the members believe Los Angeles is a favorable environment to make investments, and 80% said the city is not a good place for long-term hotel investment. Almost all the members surveyed said that rolling back the regulations would make the city’s market more attractive. The consequences are already being felt by guests and residents, Maietta noted. 'People in Los Angeles are seeing what's happening. You’re seeing retail stores and local restaurants that have been staples for years shutting down,' Maietta said. 'When you go to the hotel bar and have to wait 20 minutes for a drink because there’s only one bartender, that doesn’t lead to a great experience. 'People want their communities to thrive. They want good-paying jobs, but they also want local businesses to stay open. That is why the community is so concerned about the direction we're headed.' CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Minimum Wage Los Angeles Hotels Labor Costs Event Hosting Economic Impact
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Best of the Babylon Bee: Kamala Harris 'thinking about' losing again in 2028Rep. Eric Swalwell is resigning his seat in Congress amid multiple sexual misconduct allegations. The U.S. blockade in the Strait of Hormuz could bring Iran back to the negotiating table, or re-inflame tensions.
Read more »
Philadelphia City Council Advances $35 Million Credit Guarantee for 2028 DNC BidPhiladelphia City Council has moved forward with legislation to authorize a $35 million line of credit, underwriting the city's bid to host the 2028 Democratic National Convention. Officials expressed confidence in the host committee's fundraising abilities, stating the credit line serves as a standard financial safeguard rather than direct city financing for the event.
Read more »
Susan Shelley: Could Los Angeles back out of the 2028 Games?It’s a warning to all the cities on earth that hosting the Olympics is a shortcut to bankruptcy.
Read more »
Golden Dome will be operational by summer 2028The U.S. military's Golden Dome layered air defense system will have operational capability by summer 2028.
Read more »
Philadelphia advances $35 million line of credit in bid to bring DNC back in 2028Philadelphia's $35 million credit line marks a $20 million increase from its credit line established in 2015 to host the 2016 DNC.
Read more »
Pete Buttigieg Leading Potential Democrats for 2028 in New PollPotential 2028 candidates are expected to begin formal announcements after the 2026 midterm elections.
Read more »