Hotel Bookings in Los Angeles Lag As the 2026 World Cup Approaches
Proposal at LA City Council Could Impact Hotel Industry Amid World Cup Preparations
As Los Angeles gears up to host the 2026 FIFA World Cup in June, concerns are mounting within the Southern California hotel industry. Recent research from the American Hotel and Lodging Association reveals that nearly 70% of hotels in the Los Angeles area are experiencing lower-than-expected bookings.
According to Jeff Zarrinnam, director of the Hollywood Hotel, his establishment is currently only 37% booked for June, though he anticipates this figure could rise to 65% as the event approaches. For July, he reports that 35% of rooms are booked, with expectations of reaching 75%. Historically, the hotel has enjoyed occupancy rates exceeding 90% during the summer months.
Zarrinnam highlighted alarming statistics from STR Hotel Research, which indicate that hotels in Hollywood and Beverly Hills are averaging just 28% occupancy during the World Cup. He emphasized, "Hollywood is the bellwether indicator of what’s happening in the city in general."
Factors contributing to the decline include higher hotel rates driven by increases in the minimum wage for hotel workers and the high cost of World Cup tickets. Natalia Vasquez, a soccer fan from Colombia, expressed her shock at the ticket prices. "For the first time, the ticket was $1,100. Each ticket,” she remarked, noting that during the World Cup in Russia, she secured three tickets for a total of $1,100.
The American Hotel and Lodging Association has identified other challenges impacting hotel performance, including immigration visa barriers and a decrease in international visitors.
In a development that could further strain the local hotel market, the LA City Council is contemplating a proposal that would allow owners of second homes to rent them out as Airbnbs. This potential change raises concerns among industry leaders regarding its implications for an already saturated market.
