AAHOA OPPOSED THE Los Angeles City Council's recent proposal to raise hotel worker wages to $30 per hour, plus $8 for healthcare, citing a flawed economic impact study that misjudges the industry's ability to absorb the increase. AAHOA members, including a delegation of women hoteliers, testified before the council, warning of the proposal’s impact on smaller, independent hotels, the association said in a statement.
AAHOA Vice Chairman Kamalesh “KP” Patel, a California hotelier, testified on Oct. 16, addressing the hospitality industry's ongoing labor challenges.
"I have a very serious concern about the study presentation. The study is majorly flawed," Patel said. "There is zero understanding of the differences between hotels—high-end, full-service and limited-service. These people are asking for their fair shake. We are asking to be heard properly. Limited-service properties do not offer the same services as full-service hotels and should not be treated the same."
AAHOA argues that the study overlooks the unique challenges of smaller, limited-service hotels, ignoring their tight margins and operational constraints. A sudden wage increase to $30 per hour, plus healthcare costs, could result in layoffs, service cuts or closures, AAHOA said.
"This proposal would create severe unintended consequences for small and independent hotels, which are the backbone of our industry," said Miraj Patel, AAHOA chairman. "While we support fair wages for all employees, we urge the city council to collaborate with industry stakeholders to find a balanced solution that sustains both workers and small businesses. I also want to thank Greater Los Angeles area regional director Naresh “ND” Bhakta for his leadership in opposing this proposal."
AAHOA President and CEO Laura Lee Blake echoed these concerns, calling for a collaborative approach.
"The hotel industry, especially small, family-owned properties, is still recovering from the pandemic’s economic impact,” Blake said. “Imposing such a significant wage increase without consulting the industry will jeopardize jobs and businesses. We are ready to work with the council to explore more sustainable ways to improve worker compensation."
In recognition of AAHOA’s role as entrepreneurs, job creators and contributors to Greater Los Angeles, the council designated Sept. 4 as "AAHOA Day."
More than 100 AAHOA members attended the LA city council meeting, where Councilmembers John Lee and Traci Park honored local hoteliers for their contributions to the city's growth. Following the presentation, Mayor Karen Bass met with AAHOA members, commending their efforts that led to the creation of AAHOA Day.
Hundreds of hotel and hospitality professionals recently gathered at New York City Hall to oppose Intro 991, the “Safe Hotels Act,” citing its harmful impact on NYC hotels, subcontractors, and small businesses. Speakers also included former AAHOA Chairwoman Jagruti Panwala and AAHOA Northeast regional director Preyas Patel.
