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San Diego Minimum Wage: 

AAHOA Secures Huge Win for Hotels

SAN DIEGO, CA, September 16, 2025 — The Asian American Hotel Owners Association (AAHOA), which represents nearly 60% of the hotel industry nationwide, announced a significant win for its members as the San Diego City Council approved a carve-out for hotels with fewer than 150 rooms in its new minimum wage ordinance.

The ordinance, which establishes a $25 per hour minimum wage for hospitality workers, will now exempt hotels with fewer than 150 rooms from the mandate — a critical protection for small business owners who face tighter operating margins. In addition, for hotels with 150 or more rooms, AAHOA successfully advocated for a phased-in implementation, with wages for covered workers set to increase to $19 per hour beginning July 1, 2026, and rising by $1.50 annually until reaching $25 per hour in 2030.

"This outcome represents a fairer, more workable solution for hotel owners and their employees across San Diego," said AAHOA Chairman Kamalesh (KP) Patel. "By phasing in the wage increases and adjusting the start date to July 1, the City has given hotel operators the critical time they need to budget, adjust operations, and plan effectively for the future. This victory shows the power of hoteliers coming together, speaking with one voice, and working collaboratively with city leaders to create balanced policies. When our members unite around a common cause and engage constructively with policymakers, we can protect jobs, keep doors open, and strengthen the long-term health of our industry — not just in San Diego, but as a model for other cities to follow."

"San Diego has set a new standard by exempting hotels with fewer than 150 rooms from the city's new minimum wage mandate — and this is a huge win for our members," said AAHOA President & CEO Laura Lee Blake. "Economy and limited-service hotels simply cannot absorb dramatic wage hikes the same way full-service properties can. This carve-out protects jobs, keeps doors open, and allows owners to continue serving their communities. We applaud the City Council for listening to industry stakeholders and adopting a policy that balances fair wages with the economic realities of small businesses."

"This decision will have a significant impact on hoteliers in our region," said AAHOA South Pacific Regional Director Nilesh (Neil) Bhakta. "Our members are already navigating staffing shortages, rising operating costs, and shifting guest expectations. Policies like this can create additional pressure on small-business owners, many of whom operate on very thin margins. It's essential that industry voices are heard so that solutions support both employees and the long-term health of our hotels."

Darshan Patel, Esq., Founding Partner of DPA Attorneys at Law, was instrumental in drafting language for the exemption in the San Diego Minimum Wage Ordinance. He and his team were pivotal in navigating the complexities of the San Diego City Council to secure this result. 

"Hotels face many economic battles in today's political landscape, especially here in California. We hope this landmark outcome inspires municipalities across the nation to follow suit," Patel said. "We extend our sincere appreciation to the San Diego City Council for acknowledging the challenges faced by small-business owners, and engaging in negotiations to achieve a balanced solution that serves all sides."

AAHOA will continue to monitor the ordinance's implementation and provide its members with resources to ensure compliance while protecting business operations.

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About AAHOA

AAHOA is the largest hotel owners association in the world, with Member-owned properties representing a significant part of the U.S. economy. AAHOA's 20,000 members own 60% of the hotels in the United States and are responsible for 1.7% of the nation's GDP. More than 1 million employees work at AAHOA Member-owned hotels, earning $47 billion annually, and member-owned hotels support 4.2 million U.S. jobs across all sectors of the hospitality industry. AAHOA's mission is to advance and protect the business interests of hotel owners through advocacy, industry leadership, professional development, member benefits, and community engagement.