A report by the Hospitality Education and Research Organization indicates that the World Cup had a negative impact on some businesses in Los Angeles. The report states that hotels in the city experienced only a 1% increase in occupancy during the tournament. Seventy-two percent of surveyed hotels reported that the event adversely affected their finances for 2026, with 48% describing the impact as 'extremely negative.' Only 2% of hotels indicated that the event met their financial projections.
In June, downtown hotel occupancy was recorded at 66%, down from 71% the previous year, with room nights decreasing by 10% to 12%. FIFA had reserved large blocks of hotel rooms but canceled or released up to 70% of these reservations in host cities, including Los Angeles. Jackie Filla, president and CEO of the Hotel Association of Los Angeles, noted that the volume of cancellations led to expectations of disappointing attendance.
The disappointing turnout resulted in staff reductions, with 82% of surveyed hotels cutting seasonal staff and over 60% reducing employee shifts or permanent staff. Despite raising prices, with the average daily rate reaching $228, occupancy remained at 71%, which is lower than the 83% occupancy during Taylor Swift's Eras Tour.
The survey included responses from 58 out of 210 hotels, with data analyzed by travel-data firm Rove using CoStar and AirDNA data. International visitor numbers were also lower, with Los Angeles receiving 700,000 international arrivals in June and July, approximately 80,000 fewer than in 2024.
Filla expressed disappointment over the lack of foreign visitors, noting that they typically spend three times more than domestic travelers. In contrast, short-term rentals saw a 23% increase in demand and a 21% rise in revenue compared to July 2024, while hotel revenue decreased by 3.3%. Airbnb, the official fan accommodation for the tournament, provided incentives of $750 to new hosts.
Los Angeles is considering a temporary proposal to relax short-term rental regulations until the end of 2028 to attract tourists, which Filla warned could negatively impact hotel businesses. Concerns about the upcoming Olympic Games in 2028 are also prevalent, with 60% of surveyed hoteliers fearing that an Olympic rental surge could further harm their bookings and rates. One hotelier remarked that the World Cup had given them 'false hope' for recovery, expressing similar concerns for the Super Bowl and Olympics.