LA hotel industry warns $30 wage law threatens 2028 Olympics rooms

“Alarm bells are ringing” as members of the Los Angeles hotel industry fight over a city-mandated minimum wage increase signed into law by Democratic Mayor Karen Bass. Industry leaders warn the policy could lead to a serious room shortage at a time when the city is preparing to emerge on the world stage.

“We’re definitely ringing alarm bells. If the city doesn’t start working with the business community, things are going to be very different in terms of room availability at hotels by 2028,” Rosanna Maietta, president and CEO of the American Hotel and Lodging Association (AHLA), told Fox News Digital on Wednesday.

Timing is critical. Los Angeles will host a number of high-profile global events, including the 2026 FIFA World Cup matches at SoFi Stadium, the 2026 US Women’s Open Championship and the 2028 Summer Olympics.

Maietta cautioned that hotels must be fully staffed for these events to be a success; this task is becoming increasingly difficult due to rising labor costs.

RESEARCHERS SAY THE $20 MINIMUM WAGE FOR FAST FOOD WORKERS IN CALIFORNIA CAUSES ‘NEGATIVE CONSEQUENCES’

“We’ve already seen that impact. I think about 100 restaurants closed last year. If you think about just 6% of workers losing their jobs in less than a year, that’s a solid four years. It’s going to continue to have a negative ripple effect on the Los Angeles community,” he said.

The staggered deployment requires a big pay raise 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 argues that this mandate deprives the industry of the flexibility needed to navigate fluctuating market conditions. According to the data, the policy has already led to the following results:

• Reduction in hiring and significant cuts in total working hours
• Postponed or canceled hotel investments and developments
• Reduced airline operations and local restaurant closures

Hotels in Los Angeles, California, are struggling, according to a new report from industry researchers in a report released April 8. (Getty)

RESTAURANTS HAVE WARNED PAYING CHANGES COULD INCREASE PRICES, CUT JOBS, RESHAPE THE DINING EXPERIENCE

Mayor Bass did not respond to Fox News Digital’s request for comment, while City Councilman Hugo Soto-Martínez, a staunch supporter of the wage increase, rejected AHLA’s findings.

“Billionaire companies have spent millions of dollars to avoid paying their employees and providing them with healthcare, and they have failed,” Soto-Martínez told Fox News Digital on Monday. “Now, instead of paying their workers a living wage, they are pouring more money into misleading research; independent findings “We think that fair payment to workers will make a great contribution to our economy.”

However, AHLA noted that the study was not just a private initiative. Under a 2015 ordinance, the city is required to conduct an economic survey every three years to review the state of the local economy. To conduct this specific analysis, the City contacted AHLA and provided the questions used to collect members’ responses.

AHLA is America’s largest hotel association, representing more than 30,000 members from all segments of the industry nationwide. Its methodology stated that it was a “member survey of Los Angeles hotel operators and owners that included “16 questions in multiple choice, select all that apply, and ranking formats.”

“The city needed to do that analysis, and we complied,” Maietta said, noting the irony of the council member’s criticism. “Our hotel workers 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 path to growth and opportunity.”

Los Angeles will host the Summer Olympics in July 2028. (AP Photo/David Goldman)

WHILE NYC OFFICIALS PROPOSE MINIMUM WAGE INCREASE, BUSINESS OWNER SAYS ‘WE DON’T HAVE MONEY’: REPORT

The report revealed that no member believes Los Angeles is a suitable environment for investing, while 80 percent say the city is not a good place for long-term hotel investment. Almost all members who participated in the survey agreed that retrieval regulations It will make the city’s market more attractive.

The results are already being felt by guests and residents, Maietta said.

“People in Los Angeles are seeing what’s happening. You’re seeing retail stores and local restaurants that have been staples for years closing,” Maietta said. he 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 make for a great experience.

“People want their communities to thrive. They want good-paying jobs, but they also want local businesses to stay open. That’s why the community is so concerned about the direction we’re going.”

CLICK TO DOWNLOAD FOX NEWS APPLICATION