Long Beach is considering cutting its hotel occupancy in the coming weeks to avoid a $10 billion loss.
The city expects to post a loss of $10.2 billion in the year ending in March 2019, according to city financial officials.
In 2018, the city was on pace to post an $8.6 billion loss, which was largely due to its $6.3 billion in bond issuance.
The company is reviewing its hotel portfolio, which includes two hotels in downtown Los Angeles and a third hotel in Santa Monica, according the mayor’s office.
Long Beach Mayor Kevin Faulconer announced the plan in an interview with the Associated Press.
“We are making a very difficult decision to take our hotel portfolio into our own hands,” Faulconers office said in a statement.
“This is a very delicate decision, one that will affect hundreds of thousands of jobs, thousands of visitors and millions of families.
We have to be prepared to take this step to ensure that Long Beach remains an attractive destination for visitors and visitors’ families.”
The city has been working with a consultant to come up with a new plan to reduce hotel occupancy.
The plan would include a series of reductions that include consolidating the hotel portfolio with other local businesses.
The mayor said the city is in the process of developing a plan to eliminate hotel occupancy, with a decision expected by mid-February.