Hotel operators avoid a ‘very real threat’ by signing a deal with 25,000 workers as the city hosts the 2026 tournament.

New York City hotel operators and ⁠unions have reached an eight-year labour deal covering about 25,000 workers, averting a strike over wages, workloads and staffing levels that had threatened to disrupt the city ⁠before the FIFA World Cup, said the head of the Hotel Association of New York City.

Vijay Dandapani, the association’s president and chief executive, said on Tuesday that the mood among owners was “overall positive” after weeks of negotiations, though the industry made significant concessions.

“We came ‌a long way from where things were,” Dandapani said.

The United States will cohost the tournament with Canada and Mexico from June 11 to July 19.

While FIFA, football’s global governing body and tournament organiser, was not involved in the talks, the prospect of an influx of fans raised the stakes.

A union campaign had warned of a possible strike and urged visitors to avoid affected hotels.

The potential walkout was a “very real threat”, Dandapani said, noting recent labour actions in US cities including Los Angeles and ⁠Boston.

Dandapani said a figure of about $200,000 reflected compensation at the end of the agreement, not at the outset.

Hotel owners entered the talks aiming to preserve profitability, arguing New York’s lodging market has not ⁠fully recovered from the pandemic. Occupancy remains below 2019 levels, and inflation-adjusted room rates have yet to catch up, he ⁠said.

He also cited broader pressures, including the US-Israel war on Iran, tariffs and visa issues.

The deal follows the withdrawal of a proposed city measure that operators said would have sharply raised labour costs by limiting room attendants’ workloads and requiring double pay beyond certain ‌thresholds. Owners estimated it could have lifted wage costs by about 40 percent.

The new pact will still add costs, though operators expect tourism demand and major events to ‌support ‌revenue.