📝Hotel Tariff Playbook

The U.S. hotel industry is dealing with significant challenges from President Trump's tariff war.

View in browser Unsubscribe Tuesday April 08, 2025 Good morning, readers. President Donald Trump's recently announced tariffs are making business difficult for hotel companies, and the CEO of one hotel asset management firm told us they could  lead to economic uncertainty, fewer international visitors, and a decrease in bookings for hotels. We have her advice for hotel clients.  Hotels   Sean O'Neill Senior Hospitality Editor Image by Park Lane Hotel Hotels' Playbook for Dealing With Tariffs Michelle Russo, hotel asset manager and CEO of HotelAVE, says the U.S. hotel industry is dealing with significant challenges from President Trump's tariff war. "I basically told my team that they should assume RevPAR [revenue per available room] is going to be down 5% year-over-year," Russo said.  Russo has been considering advising client hotels to pause online advertising entirely, considering that people's intent to book and make plans may have plummeted. HotelAVE is advising its hotel properties to address potential supply chain disruptions by stocking up on critical imports and revising food and beverage menus. Get The Full Story On Skift Experiences How AlUla Is Redefining Luxury Travel for the Modern Explorer Together With   AlUla The luxury travel sector is shifting towards deeper cultural engagement and authenticity. AlUla is carving out its niche in the industry by offering travelers exclusive access to one of the world's most ancient civilizations. Get the Full Story On Skift Airlines   Meghna Maharishi Airline Reporter Image by Airbus Spirit CEO Steps Down Spirit Airlines announced on Monday that CEO Ted Christie would step down, just one part of a leadership shakeup at the ultra-low-cost carrier. The carrier said its board of directors has established an "Office of the President" to oversee the C-suite in place of Christie. Chief Commercial Officer Matt Klein is also stepping down. Those changes come just weeks after Spirit exited Chapter 11 bankruptcy.  Get The Full Story On Skift Event | May 14-15 Skift Asia Forum The travel industry's top event comes to Bangkok. Skift Asia Forum provides an essential lens into the forces driving change across one of the world's most complex and fast-moving regions. Register Before the Price Increase Hotels   Luke Martin Hospitality Reporter Image by Hyatt Hotels Corporation European Hotels' Uncertain Outlook Europe's upscale and luxury hotel market saw strong investment growth last year, but the sector is now facing a challenging landscape. Total transaction volume in the upscale and luxury segment of the European hotel market in 2024 reached €10.95 billion ($12 billion) across 137 deals.  However, the market is currently being tested by new pressures, most notably the implementation of new tariffs and increased stock market volatility.  "I think initially, the strategies are going to be more related to operational discussions. Current transactions that are being discussed at the moment will be on hold," said Juan Manuel Gea, corporate business manager at Global Asset Solutions. Get The Full Story On Skift Editor's Picks   Rashaad Jorden Associate Editor/Archivist Short-Term Rentals Savvy Vacation Rentals Takes Billboard Fight to Vrbo   Startups Travel Startup Funding Is Slowing: Companies that Raised in the Past 3 Weeks   Travel Technology Navigating AI and Travel: 'Social-First,' Influencers, and the Human Touch   Airlines Republic Airways and Mesa Airlines Agree to Merge   Airlines Latvian Government Ousts AirBaltic CEO Martin Gauss   Tourism Dubai Attracts Record Foreign Investment, with $2 Billion for Tourism   Airlines Tracking the Fallout: Which Travel Stocks are Sinking Most on Monday? Get More News On Skift   Skift Pro       With a subscription to Skift Pro, you get full access to the in-depth reporting, exclusive interviews, and breaking news that me and the rest of the Skift Editorial team produce – as well as the travel industry's premier AI answer engine and Skift Travel 200 stock index. Lock in to a New Monthly Rate Defining the future of travel. Skift. 35 W 31st St., New York, NY, 10001, USA Follow Us: LinkedIn   |  X   |  Facebook   |  Whatsapp   |  Bluesky   |  Threads You received this because you are subscribed to Newsletter | The Daily from Skift. For Gmail users: If you are using the tabbed inbox, Skift emails may be pushed to the 'Promotions' tab. To get updates from Skift direct to your primary inbox, drag and drop this email to that tab.