Business
With strike behind them, Los Angeles hotels look to move on
On a spring day last year, representatives from dozens of Los Angeles-area hotels gathered for a meeting with the union representing their cleaners, front desk clerks and other workers.
The workers’ contracts with the hotels had expired and leaders from Unite Here Local 11 laid out a stark proposal for new agreements, which included an immediate $5 an hour raise for its members.
It was a nonstarter for the hotel owners and operators — so much so they refused to send their negotiators to the next bargaining session. Weeks of tense negotiations followed and when talks broke down, Unite Here launched a strike thought to be the largest ever to hit the U.S. hotel industry.
The strike’s intermittent work stoppages, which had staff at more than 60 hotels walking off the job, would go on for more than a year. Workers in red shirts sporting drums and horns became a fixture outside of Los Angeles hotels. Picket lines were tumultuous at times and the disruption riled hotel guests, who lashed out at workers.
But now calm has returned. All but a few of the hotels involved in the strike have agreed to new contracts, conceding on the wage increases that had kicked off the strike as well as other demands made by Unite Here. In all, workers are set to receive a total hourly boost of $10 over the course of the four-year contracts.
While the labor unrest roiled a keystone of Southern California’s tourism industry and the new contracts have added to the hotels’ labor costs, hospitality experts said the strike isn’t expected to have a lasting impact on the region’s hotel industry. Hotels have emerged largely unscathed as demand for rooms in the region is healthy and revenue for the hotels climb.
“Right now people have been traveling and I would say hotels are doing well,” said Ed Fuller, a hotel and lodging industry veteran who previously served as Marriott International’s president and now runs an Irvine-based consulting group.
With the strike out of the way, Fuller said the hotel and broader tourism industry should be focused on boosting the number of international tourists back to pre-pandemic levels and “having the commitment that Los Angeles — and Orange County, and San Francisco and the whole state — is selling at all times.”
Upscale hotels in thriving coastal markets, which typically have unionized workforces, are doing relatively well, said Ryan Kawai Sanchez, an associate with real estate firm Matthews.
In particular, occupancy rates at hotels in Los Angeles County averaged more than 70% over the last 12 months, putting the region above the national average of 62.7%, according to data released by the travel industry nonprofit Visit California. The same is true for Orange County.
But not all hotels in the L.A. region are thriving, and location can be a deciding factor. Occupancy rates at the Glendale Hilton, for example, are hovering around 50%, said Travis Gemoets, an attorney at Jeffer, Mangels, Butler & Mitchell, which represents the property. Glendale, Pasadena and other more out-of-the-way areas don’t offer the same draw as more desirable and conveniently located areas such as downtown L.A. and near Los Angeles International Airport.
“It’s just a different market,” Gemoets said.
It was those differences in performance, Gemoets said, that led the Glendale Hilton’s owners to be reluctant to make a deal with Unite Here, since the increased wages the union was demanding would hit the hotel harder than more prosperous properties. The hotel eventually agreed to the wage increase last month, after other hotels in the area reached tentative agreements.
Workers took to the picket line at the Hilton Pasadena in December.
(Myung J. Chun / Los Angeles Times)
“We want labor peace and that’s why we agreed,” Gemoets said.
Union leaders have said they try to extract greater concessions from hotels that prolong negotiations. For instance, in its agreement with Hotel Figueroa, announced last week, the union won an extra dollar raise for non-tipped workers, amounting to a total hourly boost of $11 over the course of the contract, as well as an extra $1 per hour contribution to workers’ pensions. In its deal with the Glendale Hilton, the union secured additional hours for culinary workers and higher pay for tipped workers.
Hotels — whether unionized or not — are battling higher labor costs due to ripple effects from fast-food minimum wage legislation and rising insurance premiums, as multiple insurance providers have abandoned the California market, experts said.
Motels and lower-tier hotels, particularly in California’s rural areas or regions generally with less foot traffic than touristy coastal areas, are lagging behind, Sanchez said. Overall, hotels in the state haven’t completely recovered to pre-pandemic occupancy levels, he said.
“We are really only seeing that year-over-year growth in the luxury sector, and that’s largely due to higher-end customers not being as affected by inflationary pressures as the overall population,” Sanchez said.
Still, “hotels are in pretty darn good shape overall,” said Carl Winston, a professor and director of the hospitality and tourism management program at San Diego State.
Hotel businesses can — and do — pass along added costs to customers, by upping their prices, Winston said. Hotel room rates have gone up dramatically, far exceeding inflation, because it’s the “only thing they can grow.”
“If hotels have a cost increase, they can pass it along to the consumer tomorrow,” Winston said. Hotels change their prices every damn day.”
He said the wage increases built into the new labor agreements are far less of an issue for most major hotels than the debt many of them have taken on, primarily from mortgages with unfavorable interest rates, construction loans and commitments to investors.
“There’s a sense of resignation when it comes to organized labor. It’s almost like, ‘OK, we don’t want them, but they aren’t our biggest threat,’” Winston said. “If you go to hotel boardrooms today, they aren’t talking about wages as an existential threat, it’s the cost of debt they are talking about.”
The lodging industry typically evaluates its health based on two main metrics: occupancy rates and average daily rates.
After rising steeply the last few years, hotel prices in the U.S. this year have remained mostly flat compared with the same time last year, according to data released in April by online booking site Hopper. Higher prices allow businesses to draw in more revenue, but also run the risk of driving away customers.
The median nightly rate for hotels in California this year is $206, a 6% decrease in cost compared with last year’s median of $220, according to data from Kayak. In June, the state’s average daily rate was $192.16, down 0.7% year over year, according to Visit California.
An apparent spike in prices for hotel rooms, Airbnb and other short-term options may show up for California visitors in the coming months, due to a new California law aimed at bringing transparency to resort fees, service fees and hidden prices that jack up a consumer’s bill.
Under the law, businesses must include mandatory fees in their initial advertised prices. Lynn Mohrfeld, president and chief executive of the California Hotel and Lodging Assn., said the group supported the legislation in Sacramento because it should bring “a level playing field” between hotels and the vacation rentals.
“If everybody does it the same way, it makes it a better buying experience for the consumer,” she told The Times earlier this year.
Dealing with the hard numbers of pricing and occupancy rates are a welcome return to normal for hotel owners after the upheaval of the strike.
Unite Here deployed a combination of disruptive tactics — noisy picketing in the early morning, surprise work stoppages, marches through hotel lobbies — that helped put pressure on hotels, said union leaders and hotel industry experts in interviews.
“Hotels were like, ‘This is crazy,’” Bill Doak, of Westwood-based real estate investment firm Stockdale Capital Partners, said of Unite Here Local 11’s demands. Doak’s firm owns the Sandbourne, a Santa Monica hotel that reached a tentative agreement with the union last November. “It was the union’s tactic to make sure hotel owners felt the pain,” Doak said.
Hotels put together contingency staffing plans and told guests they expected to be able to serve them largely without interruption. That proved a difficult task at times.
When workers walked out during the busy Fourth of July weekend, people visiting Disneyland, the Anime Expo downtown and the L.A. leg of Taylor Swift’s Eras tour were greeted outside their hotels by picketing workers banging on drums and blowing vuvuzela horns — of which the union has purchased hundreds.
In online reviews, guests vented frustrations with both hotel management and picketing workers. “If you want to have a peaceful vacation, choose another location,” wrote a tourist who stayed at 1 Hotel West Hollywood in August.
Early on, managers at some hotels realized that the delivery of portable toilets signaled the union’s plans to carry out a work stoppage and protest in front of the property, said Kurt Petersen, Unite Here Local 11 co-president. To confuse them, the union sent toilets to hotels at random.
In January, Unite Here Local 11 organizers took stock of the dozens of hotels that had not yet agreed to new contracts and noticed about 80% were owned by private equity firms or operated by companies owned by such firms.
The union then made more concerted efforts to target companies such as Aimbridge and Blackstone with work stoppages and ramped up efforts to reach out to public pension funds invested in the private equity firms.
“Are those tactics working? Are they getting owners and managers to come to the table? I think the proof is in the results. They are winning right now,” Winston said.
With SpaceX’s historic initial public offering minting a small army of new millionaires overnight, the Southern California housing market is bracing for a big wave of buyers looking to upgrade their digs or perhaps snag a second home, potentially driving up prices in some in-demand neighborhoods.
Shares of SpaceX started trading June 12 and ended the day having raised $75 billion and making founder Elon Musk the world’s first trillionaire. It was by far the largest IPO on record, more than double the 2019 offering by Saudi Arabia’s state-owned oil giant Saudi Aramco.
At least 4,000 current and former SpaceX employees are expected to become millionaires, with about 400 of them earning $100 million or more, said Andrew Benson, chief executive of Hill.com, an investment platform for trading stock in pre-IPO tech companies.
SpaceX’s compensation philosophy historically favored equity over cash salaries, so this windfall extends well beyond executives and engineers to include nontechnical staff, entry-level workers and even cafeteria employees.
Because SpaceX has its highest concentration of employees in humble Hawthorne south of the 105 Freeway, the homebuying spree is expected to be most pronounced in the sandy South Bay and the “Silicon Beach” tech corridor that includes Venice and Santa Monica, but it may also appear in other upmarket Los Angeles-area neighborhoods or even farther away in the form of second homes.
One SpaceX buyer has been eyeing a $32-million pocket listing of his in tony Brentwood for months while waiting for the IPO, according to real estate broker Cory Weiss of Douglas Elliman.
“People are starting to look,” he said, and most will spend $5 million or more.
Melissa Pilon, a real estate agent in the South Bay with Compass, heard from one SpaceX buyer the day the company went public on a property in north Redondo Beach, and expects to hear from more would-be homeowners.
“I’m not sure how this will play out, but I think real estate agents are feeling optimistic,” Pilon said. “I think there will definitely be an uptick, but I don’t know if it will be a sustainable thing. There might be some superficially inflated prices.”
The SpaceX IPO and planned initial public offerings of OpenAI and Anthropic could generate millions in capital gains tax revenue for the state over years as shareholders cash out.
Even without inclusion of those IPOs, state finance officials this year upped their forecast of capital gains income Californians would earn due to the huge run-up in the stock market driven by AI companies. On average, gains are taxed at 10%.
While SpaceX shares have fallen recently, current and former employees who were granted shares or options still would come away winners given the stock remains above the $135 IPO price. Shares closed Friday at $153.23, up 0.15%.
It could take several months for the housing market to feel the full effect of SpaceX millions, said Paul Habibi, a UCLA lecturer and real estate expert witness at Grayslake Advisors.
The most significant buying boom is likely to take place early next year, he predicted, after the standard lockup on stock sales is fully ended in December. Batches of limited stock sales will be allowed in the coming months, however, and some real estate agents and bankers are putting together workarounds to help expectant millionaires leverage their future gains to secure loans.
Habibi expects the largest concentration of purchases to be focused in the South Bay, primarily Manhattan Beach and Redondo Beach, with some spillover into Culver City and possibly north Orange County.
The gush of new money stands to drive up the cost of homes in neighborhoods already in hot demand, echoing a pattern that has occurred in the San Francisco Bay Area.
“A place like Manhattan Beach has roughly 11,000 housing units, so there could be a pretty significant impact if a lot of those folks decide that they want to go buy houses in those neighborhoods that have such a supply constraint,” Habibi said. “Those markets are already among the priciest in Southern California and I can only imagine that will continue with this new wealth creation.”
Hermosa Beach real estate agent Ed Kaminsky agrees interest will center in the South Bay, including Palos Verdes, and he has already heard from prospective SpaceX buyers. Their dream houses have ocean views, swimming pools and four or more bedrooms, which may be hard to find.
“There are a lot of buyers that were in rentals from the Palisades fire looking to buy now and combined with all of the IPOs this summer, I think inventory in South Bay could be tight,” Kaminsky said, “The question is whether we have the kinds of properties on the market that they’re looking for.”
The concentration of buyers looking to purchase property in the South Bay could temporary inflate prices in the area, similar to when Snap Inc., social media platform Snapchat’s parent company, went public in 2017 valued at $24 billion, Habibi said. SpaceX by comparison was valued at $1.77 trillion.
“What’s interesting about Snap is that the workforce was largely clustered on the Westside, and you could see almost immediate effects in Venice and Santa Monica within months of the IPO,” Habibi said. “That was a pretty notable and significant effect on that local housing market” that temporarily inflated prices in an already hot market.
“The amount of wealth and how it comes into L.A. is always very different and vacillates,” Weiss said. “I’m not saying this is groundbreaking and nothing like L.A.’s ever seen before, but I do know that there are people who have been waiting for this to happen.”
Among them are potential buyers who have toured condominiums in Century City, where some of the region’s most luxurious condo towers stand, he said.
Certain buyers may want to buy a condo in a fancy full-service building in L.A. to use as a pied-à-terre, Weiss said, while moving their families to a distant city or state where they could commute by plane on weekends.
San Diego County should see an influx of new buyers with SpaceX dollars, said Del Mar real estate agent Kristina Quesada, co-owner of the Yost Quesada Team at Douglas Elliman. They’ll join a recent wave of house hunters from the Bay Area flush with new tech fortunes and an appetite for second homes or vacation properties near the ocean.
Buyers want to “obtain that coastal lifestyle” for less money than it would cost in other California waterfronts, she said. Popular San Diego County locations run west of Interstate 5 from Carlsbad south through such seaside communities as Encinitas, Del Mar, La Jolla and Coronado Island. Prices start around $2 million.
San Francisco real estate agent Butch Haze of Compass has seen tech booms followed by ravenous bursts of homebuying since the first internet gold rush of the late 1990s.
“Show me a great job market and I’ll show you a really strong real estate market,” he said.
San Francisco’s surging tech industry, which is getting a burst of new business around artificial intelligence, may even have a knock-on effect on Los Angeles-area real estate, Haze said.
After making a fortune through an IPO or acquisition of their companies, “the single tech guys love to move down to L.A. to be closer to the beautiful people,” Haze said. “And they get their beachfront property.”
Tech stocks took another big hit Tuesday as investors sold off shares of companies that have powered the artificial intelligence boom.
Technology companies have been spending billions of dollars investing in data centers and infrastructure needed to support the race to advance AI. But sky-high valuations and geopolitical tensions have some investors questioning whether massive AI spending will pay off, analysts said.
Reflecting the unease, the tech-heavy Nasdaq composite dropped roughly 2%. The Standard & Poor’s 500, a stock market index that tracks the performance of the largest U.S. publicly traded companies, fell by more than 1%.
Share prices for major California tech companies including Nvidia, Qualcomm, Intel and Marvell Technology all dropped. Meta Platforms, Apple, and Google’s parent company, Alphabet, also saw their stock prices slide, though the decline wasn’t as large as the drop in chip stocks.
Shares of Micron Technology, a U.S. memory chip manufacturer, plunged by more than 13% a day before the company was scheduled to report its third-quarter financial results. Anxiety in the U.S. spilled over from Asia, where South Korean tech companies SK Hynix and Samsung Electronics, both major computer memory chip manufacturers, saw their stocks plunge Tuesday by more than 12%.
“Investors are just a bit skittish after very strong moves in tech stocks where any hint of caution causes some investors to hit the sell button,” said Dan Ives, an analyst who heads technology research at Wedbush Securities, adding that it’s a “gut-check moment.”
On Monday, SpaceX saw its shares plunge 16% after a record-breaking initial public offering this month. Its share price then rebounded Tuesday, closing up less than 1% to roughly $156.
Tech companies have been making big bets on the role AI will play in people’s work and personal lives. They’ve been improving chatbots that can generate code, words, photos and videos. The companies also are betting that “AI agents” will be able to proactively tackle more in the future, automating repetitive tasks in customer service, online shopping and other industries. They’re releasing more AI-powered hardware such as smartglasses.
Major tech companies are going head-to-head in the race to dominate AI, competing to sway talent and consumers into using their products. Alphabet saw its stock slip after two of the company’s prominent AI researchers left for rival companies OpenAI and Anthropic.
Despite profitability questions, AI use has been growing. Roughly half of U.S. adults use an AI chatbot, according to a Pew Research Center report released this month. They’re using these tools for search, work tasks, entertainment and even companionship. More U.S. adults reported using OpenAI’s ChatGPT, followed by Google’s Gemini, Microsoft Copilot and Meta AI.
Amid all the hype and spending, there also have been growing fears about whether AI will take over people’s jobs and whether the boom will lead to a bubble that will eventually burst. California AI startups OpenAI, valued at $852 billion, and Anthropic, valued at nearly $1 trillion, are preparing to potentially become publicly traded companies.
“I don’t view this as a bubble,” Ives said. “I view it as we’re going to go through these white-knuckle moments as tech stocks continue to move higher, but the bears will continue to yell fire in a crowded theater when we have these pullbacks.”
Economic factors also could affect how much people are willing to invest in tech company stocks. There’s anxiety over whether the new Federal Reserve Chair Kevin Warsh will raise interest rates, making it more expensive to borrow money. That could cut into a company’s profit margin or decrease consumer spending. United States’ war with Iran is driving up gas prices while the U.S. inflation rate rose to 4.2% in May.
The AI boom is fueling the demand for memory and storage chips, but prices for them are on the rise, prompting some companies such as Apple to look at raising prices for consumer electronics.
Globally, AI spending is projected to increase to $2.59 trillion in 2026, up 47% year over year, according to a forecast by research firm Gartner.
Driven by AI demand, memory and storage vendors have significantly outperformed the S&P 500 and the SOX index, a global semiconductor and microchip index, since the start of 2025, according to a note to clients from BNP Paribas.
Still, investors are on edge ahead of Idaho-based Micron Technology’s earnings report Wednesday, said Gil Luria, head of technology research at financial services company D.A. Davidson. Since January, Micron Technology’s stock has climbed more than 233% to more than $1,000 per share.
“Any indication of a slowdown in demand for AI is seen as a potential turn in the cycle,” Luria said. “While the overwhelming sense is that demand is still far exceeding supply, investors are waiting for Micron to indicate that is still the case.”
Times staff writer Nilesh Christopher contributed to this report.
Tired of the same old dating apps like Bumble and Hinge, Marie Lansley tried talking to an artificial intelligence matchmaker.
For roughly 15 minutes, she chatted with an AI voice on the dating app Known, answering questions about her upbringing, personality, education, lessons from past relationships and whether she’s looking for a serious relationship or something more casual.
“Divorced at 36. Yea, you’re not here to waste time. The way you build your days matter,” the AI voice told her after Lansley replied she was looking for a serious relationship.
Weeks later, the San Francisco resident got a match along with a written summary of why the pair could be compatible. But the stranger wasn’t her type and she wasn’t keen on paying $15 to meet up.
Startups like Known are roping in new users by hosting in-person dating events in San Francisco.
“I want to be able to use AI to improve efficiency in dating and to help navigate a pretty frustrating dating landscape. But there are just some things that are so deeply human that AI technology cannot capture,” said Lansley, who has posted about her dating experience on social media.
Singles like Lansley are dipping their toes into the wacky world of AI dating but they’re also skeptical if it will make it easier to find love. Online dating is ripe for disruption, and tech companies big and small are turning to AI as a potential solution to find people better matches more quickly and help them improve their chances of landing a date.
For years, people have been frustrated and exhausted by the seemingly endless amount of swiping and small talk that go nowhere on dating apps. They’re turning to in-person options such as running clubs, pickleball and speed dating but finding the right partner is still tough.
Online dating remains a popular way people search for a partner but some are dumping the platforms. Tinder’s monthly active users in March dropped 7% year-over-year, though its parent company Match Group noted that the rate of decline has been slowing as it revamps the app.
West Hollywood-based Tinder, which has roughly 50 million monthly users, has been experimenting with using AI to analyze a user’s camera roll and recommend better matches.
Known, an AI dating app, has its branding plastered on a storefront in the Marina District in San Francisco.
Its rival Bumble — an app that initially stood out for having women message their matches first — saw its paying users drop 21% to 3.2 million in the first quarter this year compared to 2025. The company has been working on AI matchmaking and plans to ditch swiping in the last three months of the year in select markets.
Even dating services that have grown users such as West Hollywood-based Grindr, an app for the LGBTQ+ community, and Facebook Dating, which is included in the main social network, are also leveraging AI more.
And new AI dating startups are popping up in California, New York and other states that could change the way people find a partner online. Former Hinge co-founder and Chief Executive Justin McLeod is working on an AI dating app called Overtone, stating on its website that “AI, if used correctly, can help us invent an entirely new way for people to find their partners that is far more personal, far more efficient, and far more effective.”
Some of those startups started in the San Francisco Bay area, where AI dating apps are hosting parties, speed dating, coffee meet-ups and other in-person events to rope people into using their new service.
Singles who downloaded the Known dating app mingle over drinks at Left Door, a cocktail lounge in San Francisco, on Thursday.
On one recent Thursday night, dating app startup Known hosted a dating event at a swanky San Francisco cocktail lounge for people who completed their matchmaking call on the app. The event’s description said attendees would be greeted with “champagne, caviar bumps, and a mysterious envelope” that reveals who the AI matchmaker paired them up with.
Known Chief Executive and co-founder Celeste Amadon, who dropped out of Stanford University to create the AI dating app, said Americans are spending more time alone at home as online services have made it more convenient to do everything from getting food delivered, online shop and date. Young people complain about traditional dating apps yet they’re also still on them.
“The more I understood today’s dating apps, the more clear it became that they have been for the better part of two decades now, designed, tweaked, redesigned, rebuilt, to not work,” she said.
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1. A sign that reads, “I love my AI boyfriend” hangs in a San Francisco window. 2. Known, an AI-driven dating app, has their branding plastered on a store front in the Marina District in San Francisco. 3. Celeste Amadon, CEO of Known, poses for a portrait.
The company charges per date to ensure people show up but the startup also has a business incentive to find people a match they actually want to meet, she said. Known plans to expand to San Diego in July, she said. Amadon said she expects the AI matching technology to become more accurate over time.
Known hasn’t shared its user numbers or revenue figures. Founded in 2025, the startup launched the dating app in February and has raised roughly $10 million from investors such as Coelius Capital, Forerunner Ventures and NFX, according to PitchBook.
Grindr is learning more about how much users are willing to use and pay for AI features.
The company has been testing a subscription tier called “Edge” in Australia, New Zealand, the United States and Canada that includes AI tools that recap meaningful chats, display personalized profile recommendations and show users who they’re likely to match with.
Unlike other dating apps, Grindr users don’t swipe through profiles. The app displays a grid of people who are nearby that they’re able to chat with. Grindr has expanded beyond casual dating, allowing people to find friends, travel companions and others in the LGBTQ+ community.
Grindr’s Chief Product Officer AJ Balance said the company is still testing subscription pricing for Edge but some users are willing to pay $350 per month because they’re “seeing a lot of value” and saving time.
“We view AI and new paradigm shifts like it as opportunities to build great, new product experiences that haven’t been developed before,” he said. “Our approach is really to leverage AI, like we did with mobile, to facilitate better conversations, deeper connections, ultimately more success in dating in the real world.”
Other popular dating services aren’t charging for AI matchmaking features. On Facebook Dating, which has more than 21.5 million daily users worldwide, users can use AI to write their profile intro and chat with an dating assistant for free.
AI dating startups are popping up in California, New York and other states that could change the way people find a partner online.
The AI assistant can recommend people looking for a serious relationship, someone with common hobbies or even above a certain height or age. Roughly 1 million people use Facebook Dating’s AI assistant daily in the United States and Canada, Meta said.
Facebook Dating product manager Neha Kumar said AI can help combat “swipe fatigue” facing online dating users.
“You’re sifting through a bunch of profiles. It’s really hard to understand and find somebody that’s compatible for you based on your specific types of preferences,” she said. “We really wanted to think about leveraging AI to solve this growing pain point.”
Technology is also a double-edged sword. The rise of AI tools means people can use technology to easily manipulate photos and craft messages on dating apps that might make them seem much more attractive or charismatic than they are in person. Some people are even turning to AI chatbots for companionship.
“How do we maintain human authenticity and human connection through an AI world? I don’t have a perfect answer to that. I think we’re still figuring it out,” Kumar said.
Lansley, the online dating user, said apps do make dating more convenient but it’s much more interesting to meet people face-to-face. She worries people will rely too much on AI as a “crutch” to replace human intimacy or emotional judgment.
“Chemistry,” she said, “is always going to be analog.”
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