AAHOA opposes L.A.’s proposed minimum wage hike for hotel workers

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.