The Los Angeles City Council has approved a plan to increase minimum wage for hotel workers to $30 an hour by 2028, pending Mayor Karen Bass’ signature. While aimed at improving worker welfare, this move may exacerbate existing challenges faced by LA's hotel industry, which has faced significant downturns due to the pandemic, economic instability, and rising operational costs. Hotel owners express concern about reduced investment interest and potential distress sales, fearing that further wage increases could lead to additional financial strain on already struggling establishments.
I've never seen so many hotels on the market right now, and none of them are selling. No one wants to pay anywhere close to what they're worth.
We won't make any further investment...there'll be no transactions in the market other than lenders taking properties back.
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