financeHospitalityNet··1 min·For: Owner, GM, Investor, Ops, Revenue
LA Hotels Face Pressure From Rising Costs and Policy Changes
A new AHLA report highlights a 'perfect storm' for Los Angeles hotels, where local policies and high labor costs are stifling investment and forcing operational cutbacks.
Key Takeaways
- 1Evaluate the impact of restrictive labor regulations which have led 88% of LA hoteliers to reduce staffing or hours.
- 2Monitor the shifting investment climate as 80% of stakeholders now view Los Angeles as a poor location for long-term hotel investment.
- 3Recognize that despite being a core economic driver, rising operational costs are currently outpacing revenue growth in the LA market.
Source: HospitalityNet
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