Yucaipa Cos moves into the hospitality industry, refuses to enter into labor peace agreements in unionized markets
In the past few years, Los Angeles-based private equity manager Yucaipa Cos had moved into the hospitality industry in a big way, funding construction or renovation of thirteen hotels in cities such as Chicago, Los Angeles, Washington DC, New York City, Miami, and Scottsdale, Arizona.
In doing so, Yucaipa and its partners have largely opened hotels without labor peace agreements that would ensure the investments are protected from disruptions such as strikes and boycotts and related headline risk.
- In Washington, DC, Yucaipa and its partner Sydell have refused to adopt a labor peace agreement for The Line Hotel DC project.
- In Los Angeles, the company has not yet agreed to labor peace for two proposed Downtown hotels moving through the planning process.