Los Angeles experienced a tumultuous “hot labor summer” in 2023, with hotel union UniteHere Local 11 using disruptive tactics that caused significant economic damage. The union’s actions, which included noisy picketing, work stoppages, and protests, led to $603 million in lost economic activity and the loss of thousands of jobs. Several conventions, including the American Film Market, moved or canceled their events, impacting hotel revenues and wages.
The aftermath of these actions has left LA hotels struggling, with operating costs increasing and cash flows decreasing. Many hotels are facing foreclosure or loan defaults, and property values have declined, making the city a less attractive place for investment in the hospitality industry. As a result, new hotel construction and renovations have stalled, impacting job opportunities.
Despite the challenges, hotel leaders are committed to supporting their associates and working to rebuild LA’s reputation as a tourist destination. They emphasize the importance of promoting a safe and welcoming environment for visitors, especially with upcoming events like the World Cup and Olympics. The hope is that all stakeholders, including UniteHere, will come together to support the city’s recovery and ensure a prosperous future for the hospitality industry in Los Angeles.
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