Los Angeles hotel leader warns homeless housing proposal will 'kill' industry's marketability

Ray Patel says the program expected to face California voters in 2024 would 'badly' hurt hotel values

Hotel owners in Los Angeles are becoming increasingly worried as residents are expected to vote on a proposal that would mandate housing the homeless in vacant rooms across the city. 

President of the Northeast Los Angeles Hotel Owners Association Ray Patel joined "America's Newsroom" on Tuesday to discuss his concern surrounding the policy and the impact it could have on the tourism industry. 

"What they're going to mandate, if this is passed by the electorate, is that we turn over our inventory to the city of Los Angeles, issued out homeless vouchers, and you know that that'll kill our marketability of the hotel industry," Patel told co-host Bill Hemmer. "It'll hurt us badly. The value of the hotels will go down and tourism and corporate travel will be affected in the city of Los Angeles."

The voucher program, which voters are expected to vote on in 2024, would require hotels to send the city information on their vacant rooms for the day by 2 p.m. daily. 

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A view of a homeless encampment on Skid Row on Thursday, Sept. 23, 2021 in Los Angeles, CA. (Allen J. Schaben / Los Angeles Times via Getty Images) (Allen J. Schaben / Los Angeles Times via Getty Images)

Those rooms would then be subject to homeless individuals looking to redeem the vouchers. 

Patel warned a local labor union, UNITE HERE! Local 11, has been garnering signatures to propose similar policies before the Los Angeles City Council, but is not transparent about what voters are signing on to. 

"What folks don't know is what else they're signing in to… the petitions packed with other items and initiatives that benefit the unions but hurt the hotel industry," Patel said. "And they had passed a similar initiative a month ago, which is now law that limits the hours that housekeepers can work in the hotels and other things."

"They passed that by gathering signatures, by asking people in the same manner if they would like to support a petition for worker safety in the hotel industry," he continued. 

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The homeless crisis has long been an issue plaguing Los Angeles streets, but worsened following the pandemic. 

According to the Los Angeles Times, the homeless population was around 66,000 in 2020, which was a 14% increase from the year before. 

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