AAHOA Supports Los Angeles City Council Effort to Potentially Delay Hotel and Airport Wage Mandate Implementation

ATLANTA, May 14 –  AAHOA (Asian American Hotel Owners Association) today expressed support for the Los Angeles City Council’s move to potentially delay implementation of the city’s proposed hotel and airport worker wage mandate. AAHOA Members own more than 1,100 hotels in Greater Los Angeles.

The Council voted Wednesday to advance an ordinance that would potentially postpone implementation of the $30 minimum wage timeline from 2028 to 2030, while allowing continued negotiations among city leaders, labor organizations, and hospitality industry stakeholders.

The action follows growing concerns from hotel owners and businesses about the economic impact of the ordinance, which would increase hotel worker wages from $22.50 in 2025 to $30 by 2028, while adding mandatory healthcare benefit payments beginning in 2026.

“AAHOA Members support fair wages and strong career opportunities for hotel employees, but policies of this magnitude must reflect the economic realities facing hotel owners,” said AAHOA Chairman Rahul Patel. “Many hotel owners, particularly small business and family-owned operators, continue to face rising labor costs, increased insurance premiums, higher taxes, and ongoing operational challenges. Delaying implementation provides an opportunity for meaningful discussions that can lead to a more balanced and sustainable solution for workers, hotel owners, and the city.”

Opponents of the wage increase, including AAHOA, gathered enough signatures to qualify a measure for the Nov. 3 ballot that would repeal the city’s gross receipts tax. City officials said the measure could remove some $740 million from the city’s general fund in the first year alone, impacting funding for police, firefighters, homelessness programs, and other services. Supporters of the ballot measure, including airline and hotel industry groups, have indicated they would withdraw the effort if the city delays or halts implementation of the proposed $30 hourly minimum wage.

“The hospitality industry remains a critical economic driver for Los Angeles, supporting jobs, tourism, and local communities,” said AAHOA President and CEO Laura Lee Blake. “This pause creates an important opportunity for policymakers and stakeholders to work together toward solutions that protect workers while ensuring hotels can continue operating, investing in their properties, and sustaining local jobs as Los Angeles prepares to welcome the world in 2028.”

AAHOA will continue advocating for policies that support long-term economic growth, protect hospitality jobs, and preserve the viability of hotel operations across the region.

About AAHOA

AAHOA is the largest hotel owners association in the nation, with Member-owned properties representing a significant part of the U.S. economy. AAHOA’s 20,000 members own 60% of the hotels in the United States and are responsible for 1.4% of the nation’s GDP. More than 1 million employees work at AAHOA member-owned hotels, earning $51.3 billion annually, and member-owned hotels support 4.2 million U.S. jobs across all sectors of the hospitality industry. AAHOA’s mission is to advance and protect the business interests of hotel owners through advocacy, industry leadership, professional development, member benefits, and community engagement.