Hotel operators fight Los Angeles’ $30 minimum wage mandate
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Los Angeles hotel operators are fighting a $30 minimum wage hike passed by the city council amid the struggle against “profitability.”
“Hotels don’t just burn tourism. They support local workers and their families. These new regulations force many of us to fight to keep our businesses alive, putting thousands of jobs and our livelihoods at risk.”
Beccaria is a partner at Hotel Angeleno in West Los Angeles.
“My hotel is a family-run business. We were an important local economic factor for our community. Our hope is to keep our doors open and survive this new challenge for the next generation,” he added in the release.
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Los Angeles hotel operators are fighting a $30 minimum wage hike passed by the city council amid the struggle against “profitability.” (istock / istock)
The recently passed city ordinance mandates that city hotels must increase by $2.50 each year until they reach $30 in 2028.
After Los Angeles fell into sightseeing and travel, hotel operators who were looking forward to major sporting events to help them bounce back are tired of the orders. LA is set to host the Olympics, Super Bowl, FIFA World Cup games and the NBA All-Star Game.
But the upcoming epics of sports are not enough to offset the rise in labor costs, Beccaria told The Wall Street Journal.
“You’re going to run a lot of hotels in Los Angeles, that’s going to be devastated,” Beccaria said. He also told WSJ that he held planned renovations of $10 million due to wage increases.
“We want to sell,” John Boltz, chief executive of Pebblebrook Hotel Trust, told WSJ, referring to the hotel. Bortz owns around nine hotels, two of which are located in the city and seven others in the Great-LA area.
“But no one buys them,” Boltz added.
The anticipated downfall of Los Angeles hotel industry has prompted the AHLA to launch a petition to stop wage increases.
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The petition, which has received over 140,000 signatures, will place the initiative in the 2026 vote, exceeding the 93,000 threshold. Voters will be able to vote to abolish the ordinance next year.
A letter sent by the AHLA to Los Angeles Mayor Karen Bus in May, said wage increases were proposed and passed despite negotiations between the AHLA and the city council.
“Our industry was largely ignored,” writes Ahla.
Ahla cited the results of a “disastrous economy” published by Los Angeles Chief Management Officer and CEO of Los Angeles World Airport in “the city’s already-frazir travel, tourism and hospitality sector.”
A letter sent by the AHLA to Los Angeles Mayor Karen Bass in May said wage increases were proposed and passed despite negotiations between the American Hotels and Accommodation Association and the city council. (Chip Somodé Villa/Pool via AP)
The letter explained that an “economic tsunami” would affect the industry. Minimum wage The hike cites lower occupancy rates, layoffs, losses in tax revenue of over $169 million, derailing new hotel developments, and elimination of special room rates for the 2028 Olympics and Paralympics.
AHLA reported that the tourism industry is one of Los Angeles’ most profitable industries, generating more than $40 billion in local business sales and employing over 540,000 people.
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“But the effects of post-pandemic recovery, catastrophic wildfires, reduced international travel, inflation, high interest rates and even more issues other than our management have pushed the city’s hospitality industry to the brink,” the letter to the Los Angeles City Council said.
Bass did not immediately respond to a request for Fox Business’s comment.
