Hospitality Strikes Impact Hilton, Wyndham & Travel

The global hospitality sector is navigating a complex confluence of economic headwinds, evolving travel patterns, and intensified labor disputes. Major hotel conglomerates, including industry stalwarts such as Wyndham, Hilton, Marriott, and Hyatt, recently disclosed a downturn in U.S. RevPAR (revenue per available room) for the third quarter. Notably, Wyndham reported the most substantial decline, registering a 5% year-over-year reduction, as highlighted by Hotel Dive. This financial recalibration coincides with a burgeoning wave of worker strikes, signaling a pivotal moment for employee relations and operational stability within the industry, particularly as holiday travel approaches.

The Shifting Sands of Hospitality: Economic Headwinds and Labor Demands

Q3 Performance and Market Dynamics

The reported RevPAR declines underscore a broader economic recalibration impacting the travel and leisure industry. While the post-pandemic recovery was largely fueled by robust leisure travel, current projections suggest a moderation in this segment. Factors contributing to this shift include contracting consumer savings and an uptick in credit card debt. In contrast, corporate, group, and international travel are anticipated to experience accelerated growth. This fundamental change in traveler demographics is poised to benefit urban markets and higher-priced hotels, which are traditionally better positioned to cater to these segments, potentially leading to their outperformance in 2025, according to Niambi Business Strategies’ 2025 Global Hospitality Financial Report.

Beyond shifting demand, the sector grapples with significant operational challenges. Insights from the Lodging Conference in Phoenix revealed that economic uncertainty, escalating labor and real estate expenses, a turbulent travel environment, and tariff pressures represent the most formidable obstacles for hoteliers. These multifaceted challenges exert considerable pressure on profit margins and operational efficiencies, necessitating innovative strategies for resilience and growth.

Strategic Shifts: Luxury and AI as Growth Levers

In response to these challenges, industry experts identify luxury offerings and the strategic deployment of artificial intelligence (AI) as key avenues for growth. Marriott's recent performance, which emphasized its luxury portfolio, demonstrates the value of catering to higher-end segments during periods of economic uncertainty. This strategy aligns with projections that indicate a preference for premium experiences among corporate and international travelers. Concurrently, the integration of AI is gaining traction, with companies like Wyndham confirming the deployment of 230 AI agents to serve hundreds of thousands of customers, significantly enhancing guest experience and operational efficiency. These technological advancements are becoming critical for maintaining competitiveness and addressing labor-related cost pressures.

Unrest in the Ranks: Workers Strike for Better Conditions

The November 8th Walkouts: Philadelphia and Los Angeles

Adding to the industry's complex landscape, a significant labor dispute unfolded on November 8th, as employees at two hotels—the Hilton Garden Inn in Hollywood, Los Angeles, and the Wyndham Historic District in Philadelphia—commenced strikes. These properties are owned by RLJ Lodging Trust and operated by Aimbridge Hospitality. The coordinated walkouts, initiated by hospitality worker unions such as Unite Here Local 11 and Unite Here Local 274, highlight workers' escalating demands for improved working conditions, notably higher salaries, better healthcare, and more humane staffing levels.

Why Workers Are Striking: Demands for Dignity and Fair Pay

The primary impetus behind these strikes is the workers' struggle for family-sustaining wages that keep pace with the rising cost of living. As stated by Maria Christina Velasquez, a laundry attendant at the Hilton Garden Inn Hollywood, "Whether we strike is up to the employers and how willing they are to pay us fairly for the work we do. We’re ready for anything." This sentiment is echoed by Brent Allen, a restaurant server at the Wyndham Historic District, who articulated the difficulty of covering basic bills with current wages. Workers are seeking not only salary increases but also robust pensions, high-quality union healthcare, and equitable workloads, emphasizing a fight for dignity and respect in their roles. These demands underscore a broader socio-economic concern regarding fair compensation within a vital service industry.

The Role of Ownership and Management: RLJ Lodging Trust and Aimbridge Hospitality

The strike actions place a spotlight on the financial performance and labor policies of the entities involved. RLJ Lodging Trust, which owns a substantial portfolio of hotels across 23 states, recently reported a year-over-year decline in both revenue and net income, shifting from a net income to a US$3.74 million net loss. Moreover, the company’s donation of $25,000 to oppose a proposed $30 minimum wage for hospitality workers in Los Angeles has fueled tensions with labor organizations. Aimbridge Hospitality, the operator of the striking properties, has previously engaged in negotiations with UNITE HERE Local 11. While Aimbridge has expressed a commitment to competitive compensation and benefits, the ongoing strikes indicate that previous proposals have not fully met worker expectations, suggesting a continued need for dialogue and resolution.

A History of Disruption: Previous Labor Actions and Their Outcomes

Victories and Ongoing Struggles in Philadelphia

The current strikes in Philadelphia occur on the heels of similar successful labor actions in the city. In October, workers at the Sheraton Philadelphia Downtown and the Hampton Inn Philadelphia Center City engaged in a four-day strike, which culminated in a significantly improved contract for employees. The Hampton Inn Philadelphia Center City, in particular, ratified a "historic contract" with major enhancements to wages, healthcare, and working conditions, becoming the first of eight Center City hotels to settle a new agreement with UNITE HERE Local 274. These local successes provide a precedent and bolster the resolve of workers in ongoing disputes, demonstrating that organized action can yield tangible benefits.

The Echoes of Southern California's Historic Strikes

The recent Philadelphia and Los Angeles strikes resonate with a series of larger, more protracted labor disputes that have characterized the U.S. hospitality landscape in recent years. In July 2023, over 10,000 hotel workers across approximately 52 hotels in Los Angeles and Orange County initiated a massive walkout, demanding substantial wage increases, better healthcare, and enhanced job protections. After extensive negotiations and numerous strike days, workers at 34 hotels ratified a new contract by March 2024, achieving significant gains. Aimbridge-operated properties were notably among the last to settle during this period, which marked the largest hotel strike in modern U.S. history.

Further labor actions in April 2024 saw hundreds of workers at Aimbridge-operated hotels in Southern California strike to address allegations of harassment and verbal abuse, underscoring deeper concerns beyond economic compensation. Then, in September 2024, another widespread strike involving approximately 10,000 U.S. hotel workers occurred across multiple cities during the busy Labor Day weekend, as contract talks with major operators like Marriott, Hilton, and Hyatt stalled. These workers sought higher wages, fair staffing, manageable workloads, and the reversal of COVID-era cuts, citing insufficient wages to meet the cost of living. Such sustained and widespread industrial action highlights a systemic issue within the industry regarding worker remuneration and rights, with some strikes, like those in San Francisco, leading to improved contractual terms.

Most recently, on November 10th, Teamsters Local 986 members at the Rio Hotel and Casino authorized a strike over unfair labor practices, following nearly two years of stalled negotiations with Dreamscape, an affiliate of Hyatt Resorts. This ongoing trend of strikes signifies a robust and persistent push by hotel workers nationwide to secure more equitable and dignified working conditions.

Broader Implications for the Travel Industry

The cumulative effect of these strikes extends beyond immediate operational disruptions. They force a critical reevaluation of labor practices, compensation structures, and the overall sustainability of business models within the hospitality sector. While hotel companies navigate economic pressures and technological integration, the workforce is unequivocally demanding a fair share of the industry's prosperity. The outcomes of these disputes will undoubtedly shape future labor relations, potentially influencing policy decisions related to minimum wage and worker protections, and ultimately redefining the social contract between hospitality corporations and their essential employees.