L.A. Hoteliers Warn: Proposed $30 Minimum Wage Could Devastate the Industry

Hoteliers Push Back Against L.A.’s $30 Wage Mandate

Los Angeles hotel owners are sounding the alarm over a new city ordinance that will lift hourly pay by $2.50 each year until it reaches $30 in 2028. The American Hotel & Lodging Association (AHLA) warns the measure could trigger an “economic tsunami,” including layoffs and an estimated $169 million hit to city tax revenues.

Family Businesses Fear for Survival

“Hotels don’t just fuel tourism—they sustain local families,” said James Beccaria, partner at the family-run Hotel Angeleno. He worries the escalating payroll costs will jeopardize thousands of jobs and force some properties to close. Beccaria has already paused a $10 million renovation and doubts that upcoming marquee events—such as the Olympics, Super Bowl, FIFA World Cup matches and NBA All-Star Game—can offset the higher labor expenses.

Investment on Hold, Buyers on Sidelines

Pebblebrook Hotel Trust CEO Jon Bortz, who operates nine Southern California properties, echoed those concerns: “We’d love to sell—nobody will buy.” Industry leaders fear many hotels will defer maintenance and become rundown as profit margins erode.

Petition Drives Ballot Repeal Effort

The backlash spurred AHLA to launch a petition that has amassed over 140,000 signatures, far surpassing the threshold required to place a repeal initiative on California’s 2026 ballot. Negotiations with city officials failed to stall the ordinance before it passed.

Dire Projections for Tourism Hub

In letters to Mayor Karen Bass and the city council, AHLA cited analyses from the city’s chief administrative officer and Los Angeles World Airports forecasting:

• Falling occupancy and widespread layoffs

• Loss of special room rates for the 2028 Olympic and Paralympic Games

• Stalled hotel construction projects

Tourism typically generates $40 billion in annual local sales and supports more than 540,000 jobs. Industry executives argue the sector is already strained by sluggish post-pandemic recovery, international travel declines, inflation and high interest rates—making the wage hike a potentially devastating blow.