What's Changing with Tariffs in the Hotel Industry?
On April 2, 2025, President Donald Trump implemented a two-tier tariff system: a universal 10% baseline tariff on all imports, along with additional country-specific “reciprocal” tariffs targeting approximately 60 nations. Although he later walked back some of these tariffs to encourage negotiations, hotels should still prepare for tariffs and their impacts. As new tariffs take shape—and existing ones broaden—hotels across the U.S. are bracing for rising costs. Imported goods are becoming more expensive, from furnishings and fixtures to uniforms and tech systems. Your property can’t afford to take a wait-and-see approach. Now’s the time to prepare for the impact of tariffs on your hotel operations.
The U.S. is enforcing new tariffs on imports from China, the EU, and other trading partners. These trade shifts could impact key hotel categories, including:
- Hotel furniture and fixtures (FF&E)
- Guestroom technology and in-room entertainment
- POS systems and operations tech
- Linens, uniforms, and textiles
- Imported food, beverages, and minibar items
- Disposables and branded amenities
Understanding how tariffs affect hotel supply chains is critical for long-term planning and profitability.
How Should Hotels Prepare for Tariffs? Key Actions to Take:
1. Audit Your Hotel’s Supply Chain for Tariff Risks
Take a comprehensive look at where your hotel sources FF&E, amenities, and food & beverage products. You may discover that a large portion of your purchases come from tariff-impacted regions.
2. Have Transparent Conversations with Suppliers
Reach out to your FF&E vendors, tech providers, and F&B distributors to ask:
- How are they managing tariff-related changes?
- Are price increases or delays expected?
- Are there alternatives in their supply network?
Open dialogue today can prevent costly surprises tomorrow.
3. Lock in Pricing Before Tariffs Take Effect
If you’re planning renovations, tech upgrades, or major reorders, consider finalizing contracts now. Locking in pricing before tariffs increase can help protect your hotel’s budget.
4. Explore Alternative Products and Vendors
Some tariff exposure can be mitigated by switching to domestic or non-tariff suppliers. Work with your procurement team—or a partner like ConStrata—to find equivalent products that maintain your guest experience while controlling costs.
5. Partner with Domestic Suppliers
This is a prime opportunity to revisit relationships with U.S.-based vendors. While domestic prices may seem higher initially, shorter lead times and supply chain stability can lead to long-term savings.
6. Update Your Budget for Tariff Impact
Forecast a 5–10% cost increase on key imported items. Incorporate that into your financial planning for operations, CapEx, and procurement strategy.
7. Stay Flexible and Informed
Tariff policies shift fast. Make sure someone on your team—or an external partner—is monitoring changes and adjusting your procurement strategy as needed.
How ConStrata Helps Hotels Prepare for Tariff Challenges
At ConStrata, we help hotels stay agile in the face of change. Whether it’s identifying alternative FF&E sources, accelerating guest tech deployments, or navigating vendor negotiations, we’re here to help your team stay one step ahead of tariffs and other operational disruptions.
Let’s keep your hotel running smoothly—no matter what trade challenges arise.
