A major conflict is brewing in Los Angeles just three years before the city hosts the 2028 Summer Olympics. Several hotels are warning they may pull out of agreements to offer discounted rooms during the Olympics due to a new L.A. ordinance that will raise the minimum wage for hospitality workers.
Why L.A. hotels are threatening to exit Olympics deals
The L.A. City Council recently approved a plan to increase the minimum wage for hotel and airport workers to $30 an hour by July 2028. This will happen gradually, with the first bump taking effect in July 2025. While unions and worker advocates applaud the ordinance, some hotel operators argue that the cost is too high.
At least eight hotels, including major names like the Hilton, Hotel Angeleno, and the Hollywood Roosevelt, have said they may back out of their Olympics-related room block agreements. These deals were created to offer affordable rates for Olympic officials, sponsors, and media personnel. Hotel executives say that the steep rise in labor costs makes participation financially unrealistic.
Hotels say the L.A. Olympics deal is no longer sustainable
Los Angeles is preparing to host millions of visitors in 2028. The room block agreements are key to managing that volume and keeping hotel prices under control during the event. If major hotels back out, L.A. may face shortages, price surges, or logistical breakdowns for the Olympics.
This clash also signals larger questions about who benefits from the Olympics. Supporters of the wage increase argue that hospitality workers deserve fair pay in a city with high living costs. Opponents argue that sudden wage increases could force hotels to cut jobs, raise prices, or even shut down.
Rising tensions before the 2028 Games
If hotels withdraw, L.A. residents and small businesses could also feel the ripple effects. A disruption in the Olympics housing plans might affect local transportation, tourism revenue, and public trust.
The ordinance now awaits final approval from Mayor Karen Bass. Whether or not it moves forward, the debate over minimum wage vs. Olympic readiness is far from over.