Hotel rooms in Los Angeles and other FIFA World Cup host cities could sit empty, despite high expectations that the global sporting event would be a boon to the city.
The soccer tournament, which has sold more than 5 million tickets so far, has historically triggered a surge of international and domestic tourism and infused host cities with an economic boost.
This year, however, 80% of hotels surveyed by the American Hotel and Lodging Assn. said bookings are lagging behind initial forecasts. The hotel association partly blames FIFA for the slowdown, saying the organization overbooked blocks of hotel rooms that did not reflect true demand.
Travel also is being hampered by higher airfares and gas prices due to the conflict in Iran. Visa barriers and broader geopolitical concerns are suppressing international travel demand, the report said.
“With just two months until kickoff, indicators suggest the anticipated economic lift may fall short of expectations,” the report said. The number of tickets sold for the tournament “has not yet translated into strong hotel bookings.”
In L.A., where World Cup games will be played next month at SoFi stadium, more than 65% of hotel respondents said room bookings were below estimated demand.
Many respondents said bookings were even lagging behind that of a typical summer.
Hotels in Los Angeles cited visa complications and long distances from the venue as obstacles to bookings. According to the report, FIFA booked thousands of rooms in downtown Los Angeles that it canceled.
Ahead of all World Cup tournaments, FIFA places large blocks of rooms on hold across various properties for FIFA staff, mediaand other stakeholders. As the tournament draws closer, FIFA will adjust its plans based on demand.
“All room releases were conducted in line with contractually agreed timelines with hotel partners, a standard practice for an event of this scale,” a FIFA spokesperson said in a statement. “Throughout the planning process, FIFA’s Accommodations team maintained consistent discussions with hotel stakeholders.”
The spokesperson added that global demand for the 2026 World Cup is unprecedented.
“FIFA room block over-commitment created an artificial early demand signal that has since unraveled,” the hotel association report said. “Many hotels indicate that early booking signals overstated true demand.”
About half of hotel respondents reported cancellations or releases of previously booked blocks of rooms, the report said.
The staggering price of World Cup tickets this year could also be keeping away fans, said journalist and author Simon Kuper, who writes about soccer economics. Face values for tickets have climbed as high as $7,875.
“All the ticket prices in this World Cup are inconceivable for previous World Cups,” Kuper said. “It’s very much a new phenomenon.”
FIFA is projecting revenue between $11 billion and $13 billion for the four-year World Cup cycle, which ends when the tournament does.
Nonetheless, L.A. is expecting a major jump in tourism for the World Cup in June and the 2028 Olympic Games.
That would be welcome for an industry that is coming off some tough times.
Last year, tourist spending in L.A. fell for the first time since the pandemic began as wildfires, raids by Immigration and Customs Enforcement agents and trade tensions discouraged people from visiting, including tourists from Canada who traditionally flock to Palm Springs and other cities in Southern California during the winter months.
International air arrivals to L.A. County fell more than 30% from August to November of 2025. In Los Angeles, current international arrivals are fewer than in previous months, though the state saw an overall 3% increase last year.
The L.A. market “faces several challenges that are tempering hotel performance expectations,” said Ralph Posner, chief communications officer for the American Hotel and Lodging Assn.
“L.A.’s purported hotel underperformance is compounded by a unique combination of early FIFA block over-commitment creating artificial demand, concerns about visa barriers and operating costs,” he said. “The market was positioned as a flagship host city but is now absorbing a gap between expectation and reality.”
Surging hotel room costs in host cities are also a deterrent. For example, the Renaissance Hotel in Seattle, within walking distance of Lumen Field, is renting a King guest room for less than $300 the weekend before the World Cup. For the weekend of the U.S. game there, the rate is more than $1,000 for the same room.
To save costs, some fans are choosing to stay farther from the venues or opting for alternative lodgings such as Airbnbs. Airbnb’s chief financial officer said the World Cup is expected to be the largest event in the company’s history.
The hotel association said that even though initial indications are bad, things could still get better.
“We are hopeful that momentum will build over the next few weeks in the lead up to the games,” Posner said.
Times staff writer Kevin Baxter contributed to this report.
