Los Angeles hotels experienced disappointing results during this summer’s World Cup, despite the influx of international soccer fans. A report released this week by the Hospitality Education and Research Organization, affiliated with the Hotel Association of Los Angeles, revealed only a modest 1% increase in hotel occupancy in the city throughout the tournament.

The survey, which received responses from 58 of the city’s 210 hotels, indicated that 72% of hotels reported financial setbacks related to the event, with nearly half describing the impact as “extremely negative.” Only 2% of respondents said their revenue met expectations.

Downtown Los Angeles saw occupancy decline to 66% in June 2026, down from 71% the previous year. Meanwhile, demand, measured by the number of room nights sold, fell between 10% and 12% compared to 2024. The average daily rate for hotel rooms in the city reached $228, the highest for a comparable local event over the past three years, but occupancy remained notably below the 83% recorded during Taylor Swift’s Eras Tour.

Industry representatives attributed part of the disappointing turnout to FIFA’s management of hotel room blocks. Typically, FIFA reserves a large number of rooms in host cities leading up to World Cup tournaments, but this time up to 70% of those reserved blocks were canceled or released, including in Los Angeles. Jackie Filla, president and chief executive of the Hotel Association of Los Angeles, noted that the volume of cancellations signaled trouble well before the event began.

The reduced demand led to significant operational adjustments within the hotel sector. According to the survey, 82% of hotels cut seasonal staffing levels, and more than 60% reduced employee shifts, scheduled hours, or permanent staff positions.

International visitors were notably sparse as well. The city welcomed approximately 700,000 international arrivals during June and July—roughly 80,000 fewer than during the same period in 2024. Filla highlighted the impact of the decline in foreign visitors, emphasizing that international tourists typically spend three times more than domestic travelers.

While traditional hotel revenue fell by 3.3%, short-term rental platforms saw a sharp rise. Demand for short-term rentals increased by 23% and revenue by 21% compared to July 2024. Airbnb, designated as the tournament’s official fan accommodation provider, introduced incentives of $750 for new hosts during the event. This growth in short-term rentals has industry stakeholders concerned, especially as Los Angeles considers temporarily easing short-term rental regulations through 2028 to accommodate tourists. Filla warned that such measures could further undermine hotel businesses.

Looking ahead, hotel operators expressed apprehension about the 2028 Olympic Games in Los Angeles. Approximately 60% of surveyed hoteliers expect that a surge in rental accommodations during the Olympics may negatively affect hotel bookings and room rates. One hotelier commented that the World Cup “gave us false hope to recover from a negative year” and predicted similar challenges during upcoming major events like the Super Bowl and Olympics.