Bartender holding a drink on the left and white house on the right

BREAKING NEWS

Tariffs Shake up U.S. Hotel Industry in Early 2025

SOURCES | SOP For Hotel | Hotel Management Network | Skift

  • Renovation projects and Property Improvement Plans (PIPs) are being postponed or scaled down. The cost to build a hotel has surged 5–10%, with analysts predicting more construction slowdowns and constrained supply growth.
  • Supply chains are under pressure. Many hotels that depend on international suppliers now face price hikes, shipping delays, and product inconsistency. While some are turning to domestic or non-tariffed markets, options are limited, and brand consistency is harder to maintain.
  • Travel behavior is shifting. Consumers are reacting to inflation by cutting back on discretionary spending, including travel. Lodging spend is down 2.5% year-over-year, while airline stocks and consumer confidence have plummeted. Hotels are seeing more last-minute bookings and increased price sensitivity, especially among mid-range and budget travelers.
  • International tourism is declining. New visa restrictions, like requiring sex-at-birth declarations, are creating diplomatic tensions and deterring travel from Europe and Canada. A 20% drop in Canadian visitors alone could cost the U.S. travel sector over $3 billion CAD. High-end international travelers are staying away, and gateway cities like NYC and LA are seeing the impact.
  • In response, hotels are revising menus, sourcing locally, renegotiating supplier contracts, and investing in energy efficiencies to cushion cost hikes. Luxury hotels are absorbing the pain better than others, while smaller and regional hotels struggle to stay competitive without eroding guest experience.
  • Hoteliers are urged to adapt quickly—focusing on flexible pricing, cost-effective sourcing, and smarter revenue strategies. The outlook for travel industry growth has been cut to 2–5% from the previous 6–9%, with RevPAR forecasts slashed as low as 0.9%.

INDUSTRY PROJECTIONS

AHLA Reports U.S. Hotels to Add Over 14,000 Workers in 2025

SOURCES | Hotel Management Network

  • The American Hotel & Lodging Association’s 2025 State of the Industry Report indicates that U.S. hotels are expected to hire more than 14,000 workers this year. The report highlights staffing challenges and emphasizes new approaches to attracting and retaining employees.​

REGULATORY UPDATES

New York City Allows Alcohol Sales in Outdoor Dining Spaces

SOURCES | The NYC

  • As of early April 2025, New York City restaurants with conditional approvals for outdoor dining are permitted to obtain liquor licenses. Previously, establishments needed full outdoor dining permits before applying for such licenses, leading to delays due to a backlog in the approval process. This change is intended to support the hospitality industry by allowing alcohol sales in outdoor dining areas, enhancing the dining experience for patrons.​

SEASON TRENDS

Spring Break Travelers Are Planning Warm-Weather Trips in 2025

SOURCES | Lodging Magazine

  • Florida is booming for Spring Break 2025, with Orlando, Miami, Fort Lauderdale, and Tampa among the top U.S. destinations — key markets for hotels to prepare for increased bookings.

  • Hotel rates are up: U.S. properties are seeing an average 8% increase, with domestic stays now averaging $660 — a positive signal for RevPAR and revenue growth. International hotel rates are slightly down (↓4%), averaging $740, which could impact outbound U.S. travel but maintain pressure on U.S. demand. Cruise traffic is at a record high, especially from Florida ports. Hotels near Fort Lauderdale, Port Canaveral, and Miami should expect increased pre- and post-cruise stays.

  • Rising domestic travel costs and cruise interest suggest strong demand for bundled offers, family packages, and short-stay promotions.

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CFUSA is committed to delivering the latest in hospitality trends, breaking news, and regulatory updates — empowering hoteliers to stay informed, competitive, and ahead of the curve. Whether it’s market shifts, industry innovations, or compliance changes, we provide the insights that help you make smart, strategic decisions.