Los Angeles hotel operators have criticised a newly approved ordinance that will raise the minimum wage for staff at hotels of 60 rooms or more to $30 per hour by mid‑2028.
The change, aimed at helping workers afford high living costs, has sparked concern from industry groups who warn it could strain an already fragile local hospitality sector.
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Impact on hotel renovations and services
Hotel executives report that many renovation plans are on hold and some services, including valet parking and restaurant options, are being reduced.
Pebblebrook Hotel Trust’s CEO Jon Bortz said attempts to sell properties have failed, while boutique operator Mark Beccaria postponed a £8 million refurbishment originally scheduled before the 2028 Olympics.
Operators warn that lower upkeep and fewer staff could harm guest experience during key events such as next year’s World Cup, the Super Bowl, and the Olympics.
Union perspective on living wage and cost of living
The move to a $30 minimum wage has been championed by Unite Here Local 11, representing over 32,000 hospitality workers.
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By GlobalDataThe union argues that soaring rents—averaging around $2,383 a month for a two‑bedroom—and high living costs necessitate the pay raise.
Organisers are now seeking to extend the wage increase citywide via ballot initiatives, hoping to build support and counter efforts to block the law.
Legal challenge and referendum campaign
Industry bodies such as the American Hotel & Lodging Association have initiated a referendum campaign that could pause implementation if they collect around 93,000 signatures by late June.
If successful, the wage hike would be suspended for one year and put to a vote in June 2026.
Meanwhile, unions have launched their own petition drives to secure the measure and advance a broader proposal for a citywide $30 minimum wage.
The debate over the hotel minimum wage in Los Angeles underscores broader tensions between efforts to improve worker pay and concerns over economic impacts on a tourism‑dependent industry that has yet to fully recover from the pandemic.
