Los Angeles hotel earners warned that a $30.00 per hour minimum wage hike recently approved by the Los Angeles City Council would severely impact their businesses ahead of a major few years of tourism.

The new municipal ordinance, which will require hotels to raise their minimum wages by $2.50 annually until they reach $30.00 per hour, would mark a 48% wage hike in only three years.

“Hotels don’t just fuel tourism. They support local workers and their families,” Mark Beccaria, a partner at Hotel Angeleno, said in a statement. “These new regulations will force so many of us to fight to keep our businesses alive, putting thousands of those jobs and our livelihoods in jeopardy.”

The new policy comes as Los Angeles prepares to host the NBA All-Star Game and several World Cup matches in 2026, as well as the Super Bowl in 2027 and the Olympics in 2028.

Los Angeles tourism has suffered in recent years, but the new minimum wage requirement dashes the hopes of many hotel owners for a recovery driven by the sporting events.

“My hotel is a family-owned business. We have been an important local economic driver for the community,” Beccaria added in the release. “Our hope is we can keep our doors open and survive this new challenge for the next generation.”

In response to the minimum wage policy, the American Hotel and Lodging Association has launched a petition to block the new statute. The document has gained 140,000 signatures, exceeding the threshold to place the policy on the ballot next year.