[Anti-business Bass...] L.A. hotels threaten to withdraw from Olympics deal over minimum wage hike

https://ktla.com/news/local-news/la-hotels-threaten-withdrawal-over-wage-
increase/

Los Angeles hotel operators are threatening to withdraw from agreements to 
provide discounted rooms for the 2028 Olympic Games over a city ordinance 
that will significantly boost the minimum wage for hotel and airport 
workers.

On Friday, the L.A. City Council will vote for a second and final time to 
hike the minimum wage for tourism workers to reach $30 an hour by July 
2028.

The ordinance passed the first round of voting on May 14 but did not get 
unanimous support.

At least eight hotels say they will back out of the room block agreement 
if the measure passes. That agreement includes discounted rates for 
officials, sponsors, and even the media at hotels across the city.

The hotel operators, including Hilton, Hotel Angeleno, Hotel Per La and 
Hollywood Roosevelt, argue that the increased labor costs are financially 
unfeasible.

“Common sense says you cannot raise wages over 30% in less than a year 
when revenue is flat,” argued Mark Beccaria of Hotel Angeleno. If this 
increase in labor costs passes, we will be forced by the City to consider 
converting this hotel in the heart of residential Brentwood into a 
homeless shelter.”

“If the City continues down this path and only listens to one side of the 
equation, there will be hotel closures, lost jobs and lost opportunities 
for all,” said Kara Bartelt, General Manager of Hoxton Los Angeles.

Under L.A.’s Olympic Wage ordinance, the minimum wage for airport and 
hotel workers will increase incrementally. It is set to rise to $22.50 an 
hour in July 2025, followed by annual increases of $2.50 each July. This 
phased approach will see the wage reach its peak at $30 an hour by July 
2028, coinciding with the start of the Olympic Games.

Supporters, including labor unions, argue the wage boost will help keep 
workers in the city and benefit the local economy.

“City leaders have an opportunity to ensure the Olympic and Paralympic 
Games benefit hard-working Angelenos, and this ordinance does just that,” 
Unite Here Local 11 co-president Kurt Petersen told the city council.


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