Title: Aimbridge Hospitality Faces Backlash as UNITE HERE Local 11 Launches “Shamebridge” Boycott
Gracie Gottlieb | 30 January, 2024
Introduction:
In recent news, UNITE HERE Local 11, a labor union representing over 32,000 hospitality workers in Southern California and Arizona, has announced a boycott of Aimbridge Hospitality. Aimbridge, the largest third-party hotel operator in the world, is facing criticism for its refusal to sign a fair contract at its union properties in Southern California. This comes as Aimbridge loses its second operating agreement at a hotel in Los Angeles. In this article, we will explore the details of the boycott, Aimbridge's controversial practices, and the potential impact on the company's future.
Content:
The announcement of the boycott on the first day of the American Lodging and Investment Summit has marked a significant turning point in the ongoing dispute between Aimbridge Hospitality and UNITE HERE Local 11. The labor union has called for a boycott of Aimbridge until the company agrees to sign a fair contract at its union properties in Southern California. This move, dubbed the "Shamebridge" boycott by Aimbridge employees, aims to pressure the company to prioritize the rights and demands of its workers.
Adding fuel to the fire, Aimbridge recently lost its operating agreement at the DoubleTree property in San Pedro. The ownership of the hotel notified UNITE HERE Local 11 that Remington Hospitality will take over operations, effective February 19. This marks a second major loss for Aimbridge in the Los Angeles area, following its termination as the operator at the Le Merigot Santa Monica last August.
Controversy surrounding Aimbridge extends beyond these recent developments. Aimbridge has been subjected to class-action lawsuits and allegations of violating worker safety provisions at the San Pedro DoubleTree. Housekeepers from the same hotel filed a lawsuit against a subsidiary of Aimbridge, accusing the company of disregarding panic buttons and other safety measures mandated by the Los Angeles Hotel Worker Protection Ordinance.
Aimbridge's business model and practices have also come under scrutiny. Following Advent International's acquisition of Aimbridge in 2019, concerns have been raised by industry analysts and credit ratings agencies. These concerns include high turnover in the C-suite, overly-aggressive growth strategies, and credit issues. Experts have suggested that Aimbridge's pursuit of aggressive growth to facilitate a potential liquidity event, such as a public sale or IPO, may have led the company to overextend itself.
Moreover, there have been reports of weaker performance at Aimbridge as it focused on rapid expansion, leading some owners to seek smaller, third-party firms that can provide more individual attention. Rumors and speculation about Aimbridge's future have been circulating, implying that change is inevitable for the company.
Conclusion:
The launch of the "Shamebridge" boycott by UNITE HERE Local 11 highlights the growing dissatisfaction with Aimbridge Hospitality's practices and treatment of its workers. Aimbridge's loss of operating agreements at two major hotels in Los Angeles adds to the company's challenges. As the labor union continues to push for fair contracts, Aimbridge will need to address concerns about its business model and operations if it wishes to regain trust and secure its future in the highly competitive hospitality industry.
Note: The article has been written without mentioning the press release or Business Wire to comply with the given instructions.
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