Los Angeles hotel industry 'struggling' under wage mandate signed by Mayor Karen Bass, new survey finds

Hotels in Los Angeles, California are struggling, a new report from industry researchers claimed in a new report.”Hotels are struggling to keep up with rising operating costs coupled with falling demand,” the American Hotel and Lodging Association (AHLA) researchers said last week.According to AHLA, the city’s minimum wage mandate and other policies led to increased “costs without flexibility to reflect market conditions and demand levels.”A phased-in minimum wage hike in Los Angeles mandated up to $30 per hour for airport and hotel workers. The law was signed into law last year by Mayor Karen Bass, mandating that their hourly wage must be raised by $2.50 each year until they reach $30 in 2028.DAVID SPADE WONDERS IF HOLLYWOOD CAN RECOVER ITS MOVIE INDUSTRY AS PEOPLE FLEE LOS ANGELESThe AHLA is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide. Its methodology stated it was a “member survey of Los Angeles hotel operators and owners” that featured “16 questions in multiple-choice, select-all-that-apply, and ranking formats.”The report claimed that the policies led to reduced hiring and cuts in labor hours. Other issues that arose included delayed or canceled hotel investment and development, reduced airline operations and restaurant closures.”The report finds that hotels across Los Angeles are facing increasing financial and operational pressure as rising labor and operating costs outpace revenue growth, noting that development is slowing, investment is shifting to other markets, and some hotels have closed or delayed expansion plans,” the report stated.The report…

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