AH November 2024
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www.asianhospitality.com
November 2024 | Issue 231
News
08
AHOA opposes 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."
An outside consultant, Berkeley
Economic Advising and Research,
conducted the study and local workers
unions used it to renew their push for
increased pay, according to the Los
Angeles Times.
“This report confirms what we’ve been
saying for years: essential airport workers
like my coworkers and me need and
deserve to be paid a true living wage,” said
Jovan Houston, an LAX customer service
agent and SEIU-United Service Workers
West executive board member, according
to the Times quoting a news release by the
coalition.
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."
The Hotel Association of Los Angeles
also opposed the wage hike.
“Our hotels are committed to ensuring
employees are compensated and trained
appropriately, and we applaud the city’s
attention to this issue. However, the
proposed Hotel Worker Minimum Wage
Ordinance is misguided and its economic
impact analysis utterly incomplete,” it
said in a statement. “The city’s proposed
wage increase would be unaffordable and
create tremendous uncertainty for hotel
operators as they consider stafÏng levels,
service to guests, and construction and
renovation projects.”
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.
AAHOA opposes L.A.’s proposed
minimum wage hike for hotel workers
The association claims the city is overlooking the challenges and margins of
smaller hotels
AAHOA opposed the Los Angeles City Council’s 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.
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