LA Mayor Karen Bass warns city doesn’t ‘have enough hotel space’ for Olympics

LOS ANGELES — Mayor Karen Bass cited concerns about a hotel-room shortage during the 2028 Olympics in defending her support for delaying the city’s $30 minimum wage hike for hospitality and airport workers.

“You have hotels saying they're going to close up,” Bass said during a POLITICO event in the city Wednesday. “I mean, we don't have enough hotel space here for the Olympics, and so we do have to think about 2028.”

Bass’ comments come in the wake of the Los Angeles City Council approving a deal Tuesday to delay the wage increase until after the summer Olympics. The mayor said she had been the “closer” in final negotiations between labor groups and business leaders who, in turn, agreed to back off a November ballot initiative to eliminate the gross receipts tax — which could have crippled the city’s budget.

The Democratic mayor added, “You want to pay attention to people’s wages. On the other hand, you don't want to go so high that they may limit business.”

A recent report from Deloitte, the accounting and consulting firm, warns that tourist demand from the Olympics will exceed the amount of lodging typically available during busy days in Los Angeles and Orange counties. The report, commissioned by Airbnb, suggests that up to 320,000 visitors could face limited options.