Los Angeles is gearing up to host some of the biggest global events on the planet — the 2026 FIFA World Cup, the U.S. Women’s Open Championship, and the 2028 Summer Olympics. But instead of rolling out the red carpet, city leaders seem determined to roll out a policy that could leave visitors wondering where exactly they’re supposed to stay. Because nothing says “welcome to America” like a shortage of hotel rooms. ??
Hotel industry leaders are warning that the city’s mandated wage hike, signed into law by Democratic Mayor Karen Bass, could seriously damage business. Rosanna Maietta, president and CEO of the American Hotel and Lodging Association, made it clear that alarm bells are already ringing. If city officials don’t start working with businesses, room availability by 2028 could look very different — and not in a good way.
The mandate requires hourly wages for airport and hotel workers to increase by $2.50 annually until they reach $30 per hour by 2028. Supporters claim it will boost the economy, but industry leaders are pointing to what’s already happening. Around 100 restaurants have closed in the last year, and roughly 6% of workers have lost their jobs in less than twelve months. Multiply that over the next four years, and the ripple effect becomes hard to ignore.
The AHLA emphasized that its findings weren’t pulled out of thin air. The city itself required an economic analysis under a 2015 ordinance and even provided the questions used for the survey. The association, which represents more than 30,000 members nationwide, reported that none of the respondents believe Los Angeles is currently a favorable environment for investment. About 80% said the city isn’t a good place for long-term hotel investment, and nearly all agreed that rolling back regulations would make the market more attractive.
Maietta also highlighted the real-world consequences already being felt. Long-standing local businesses are shutting down, service quality is declining, and guests are noticing. Waiting twenty minutes for a drink at a hotel bar because there’s only one bartender isn’t exactly the kind of experience that builds tourism momentum — especially when the world is watching. ?
Communities want good-paying jobs, but they also want thriving local businesses. Striking that balance is key, and many in the industry believe collaboration — not rigid mandates — is the path forward. With major international events on the horizon, there’s still time to course-correct, support workers, and keep Los Angeles competitive. And if leaders choose cooperation over ideology, the city can still deliver the world-class experience everyone expects. ??✨
