LOS ANGELES, CA, OCTOBER 22, 2024 — AAHOA (Asian American Hotel Owners Association), representing 1,165 hotel owners in the Greater Los Angeles Area, voiced strong opposition to the Los Angeles City Council’s proposed minimum wage increase for hotel workers, which would raise wages to $30 per hour, along with an additional $8 per hour for healthcare. AAHOA maintains that a recent economic impact study supporting this measure is fundamentally flawed, inaccurately concluding that the hotel industry can absorb such a drastic increase.
AAHOA Members have testified multiple times before the Council, including last week when a delegation of women hoteliers voiced concerns about the adverse effects this proposal would have on smaller, independent hotels. AAHOA Vice Chairman Kamalesh (KP) Patel, a California-based hotelier, testified Wednesday on behalf of the association, stressing the ongoing labor challenges facing the hospitality industry.
“I have a very serious concern [about the study presentation]. [The study] is majorly flawed,” said Kamalesh (KP) Patel. “There is zero understanding of the difference 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 that full-service hotels offer and should not be treated as such.”
AAHOA argues that the study overlooks the unique challenges facing smaller, limited-service hotels, failing to account for their tighter profit margins and operational constraints. A sudden wage hike to $30 per hour, coupled with healthcare costs, could destabilize many of these hotels, leading to layoffs, reduced services, or even closures.
“This proposal would create severe unintended consequences for small and independent hotels, which are the backbone of our industry,” said AAHOA Chairman Miraj S. Patel. “While we support fair wages for all employees, we urge the City Council to work with industry stakeholders to find a balanced solution that sustains workers and small businesses. I also want to thank Greater Los Angeles Area Regional Director Naresh (ND) Bhakta for his continued leadership in opposing this proposal from the Council.”
AAHOA President & CEO Laura Lee Blake echoed these concerns, emphasizing the need for a collaborative approach. “The hotel industry, especially small, family-owned properties, is still recovering from the economic impact of the pandemic. Imposing such an extreme wage increase without consulting the industry will jeopardize jobs and businesses. We stand ready to work with the Council to explore more sustainable ways to improve worker compensation.”
Earlier this fall, the Council designated September 4 as “AAHOA Day” to acknowledge the association’s pivotal role as entrepreneurs, job creators, and contributors in the Greater Los Angeles Area.
More than 100 AAHOA Members attended an LA City Council meeting where Councilmembers John Lee (CD-12) and Traci Park (CD-11) introduced AAHOA and paid tribute to local hoteliers’ role in the city’s development. After the presentation, LA Mayor Karen Bass made a special appearance to meet with AAHOA Members and congratulate them on their efforts, which warranted the recognition of a dedicated AAHOA Day.
