Hoteliers Scramble to Price U.S. Tariff Risk

Key Points

• Recent U.S. Supreme Court rulings and new tariffs have caused confusion among hoteliers about future costs and potential refunds.
• Tariffs on imported furniture and fixtures modestly impact overall renovation costs, with most projects proceeding despite the changes.
• The process for obtaining tariff refunds is unclear, and pursuing them may not be cost-effective for smaller hotel owners.

Summary

Recent U.S. Supreme Court decisions and new tariff announcements have created uncertainty for U.S. hoteliers regarding the costs of renovations and the possibility of obtaining refunds on tariffs already paid. While tariffs on imported furniture and fixtures add some cost, their overall impact on hotel projects is modest, with most renovations moving forward. However, the prospects for tariff rebates remain unclear, and for many smaller hotel owners, the legal and administrative costs of pursuing refunds may outweigh the potential benefits.