For Los Angeles, the ongoing FIFA World Cup is a dress rehearsal for the 2028 Olympic Games. As millions of visitors frequent the southern Californian metropolis, the city is for the first time seriously being put to the test regarding its transport, tourism, and infrastructure promises of the last decade.
Before this era of major events began, there was understandable concern in Los Angeles, particularly in the run-up to the eight World Cup matches at the $5 billion SoFi Stadium. Reasons for this included disappointing hotel bookings and fears of low visitor numbers, partly due to larger travel and immigration issues. It was feared that the positive effects of football on the host cities in the United States might not materialise as expected.
Rosanna Maietta, President and CEO of the American Hotel & Lobbying Association (AHLA), stated in a late June communication to the Commercial Observer that hotel demand in host cities had developed differently from what many had initially assumed, partly due to lower-than-expected international visitor numbers. However, initial indications suggested that the events surrounding the World Cup were positive and, in particular, highlighted the need for better public spaces and gathering places. Bars, streets, and parks in L.A. have experienced a solid response to the World Cup.
Economic Impulses from Major Events
The AHLA is still compiling final figures on the World Cup's impact. However, Ms Maietta reported that members were seeing an increase in demand shortly before the event, “which is consistent with a current trend of shorter booking windows for events of this calibre”. The industry expects a further acceleration of late bookings as the tournament draws to a close. Hosting the World Cup also illustrated the far-reaching economic consequences such global events can have.
The series of major events in L.A., from this year's World Cup to the Super Bowl in 2027 and the Olympic Games in 2028, has been a long-awaited catalyst for commercial real estate, as Sean Fulp, Vice Chair at Colliers, emphasised. For the office market, which is looking to gain momentum for the first time this decade, with stabilising vacancy rates and only 2.3 million square feet of new space coming onto the market this year, this impulse comes at an opportune moment. The multi-family housing market is affected by stagnating or declining demand, caused by immigration issues and the profound changes in the entertainment industry, leading to low rent increases. The hotel industry is attempting to overcome years of tourism decline and the financial impact of new labour laws.
“The tourism money and infrastructure investments, as well as the capital flowing into the region, will be helpful,” said Fulp. “But Los Angeles is also a very large market, so the impact won’t be as significant as in a smaller market.” Many retail and entertainment venues in L.A. reported positive preliminary results from World Cup visitors and tourists. The upscale Santa Monica Place shopping centre experienced an “incredible surge in foot traffic,” as Caroline Mayhew, who co-manages marketing for Prism, the centre’s operator, noted. The opening celebration for the United States’ first match drew 12,400 visitors to the property, a 54 percent increase compared to a typical day. Mayhew described this type of activation – which included 30-foot LED screens and a Stella Artois engraving station – as a dress rehearsal for the Super Bowl and the Olympic Games.
Confidence in the Hotel Industry and Long-Term Planning
While final hotel booking data is not yet available, activity appears to have given the sector a boost, particularly given gloomy prior forecasts and the state of the hotel industry. An AHLA report from April noted that hotel owners were extremely pessimistic about the labour laws passed by the L.A. City Council, particularly the two ordinances guaranteeing a $30 hourly wage for employees in the industry. Many owners argue this is either too restrictive or unsustainable.
However, a forecast by Marcus & Millichap for 2026 painted a slightly more optimistic picture, with 1,400 new rooms opening in the region, an increase in occupancy rates to 71.8 percent, and a 3 percent rise in revenue per room to a record $144.06. Hotel consultancy HVS believes that the sector, while facing challenges, will experience slow and steady growth over the next few years. The City Council even delayed the implementation of the wage increase, which is now set to reach $30 by 2030 instead of 2028, providing the sector, if not its workers, with some economic relief.
The 2028 Olympic Games in Los Angeles have been dubbed the “Non-Build Olympics,” echoing the 1984 Summer Games in L.A. This means that existing infrastructure will be utilised to make hosting such an event more sustainable and cost-effective.
