Driven by rounds of US tariff policies, savvy investors began adjusting their positions as early as two months ago, triggering a sustained decline in the US hotel stocks.
As of market close on April 8, Hilton's stock price dropped from a peak of USD 273 to USD 201, Marriott's stock fell from USD 303 to USD 211, and Hyatt's stock declined from USD 166 to USD 104—each posting a decline of around 30%.
From a global supply chain perspective, the immediate impact of these steep tariffs is a sharp increase in renovation, refurbishment, and development costs across the US hotel industry.
Taking furniture as an example, according to China's General Administration of Customs, China exported RMB 483.034 billion (about USD 65.7 billion) worth of furniture and components in 2024, with the US as its largest export market.
Under the newly imposed 104% tariff rate, the cost of importing hotel furniture from China to the US will effectively double—posing a heavy burden for American hoteliers.
A report by Bernstein Research warns that if the new tariffs reduce US GDP by 1%-1.5%, the growth rate of RevPAR (revenue per available room) for US hotels could drop from the previously projected 3.1% to just 0.9%-1.9%, or even lower.
Analysts further caution that if global economic pressures intensify, the hotel industry may see not only a steep drop in leisure travel, but also significant cuts in corporate travel budgets as businesses look to contain costs.
