Why Tariffs May Raise Some Costs for U.S. Hotels
Photo Credit: The Hyatt Zilara Rose Hall in Montego Bay, Jamaica. Hyatt Corporation
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Richie Karaburun, clinical associate professor at NYU, is worried. But the hospitality industry continues growth with new hotels, acquisitions, and expansions across the US and Europe despite tariff concerns.
The DJIA rose 619 points while Nasdaq was up 337, the S&P 500 was up 95 points, and the 10-year treasury yield, which briefly touched below 4% for a bit less than 10 days ago, was up another .10 to 4.49%. Lodging stocks were higher.
Richie Karaburun, clinical associate professor at NYU's Jonathan M. Tisch Center of Hospitality, gave his views on the tariff situation and the potential impact on the hotel industry. He feels the tariffs threaten to create a perfect storm of challenges for hotels, making hoteliers' lives miserable when combined with shifting visa regulations and safety concerns around entering the US. Besides impacting inbound tourism, it will be more expensive to operate a hotel, according to Karaburun. He feels tariffs will impact both daily operations and future development, with hotels facing rising costs for essential imports, including linens and towels from Vietnam, Cambodia, and Indonesia. Everything from housekeeping supplies to break
