Luxury Hotels Are Taking A Hit In The Wake Of Trump’s Travel Ban

New York Palace Hotel
New York Palace Hotel

President Donald Trump’s travel ban is deterring some of the world’s biggest spenders from visiting the U.S., and their absence is crippling the luxury hotel industry.

Travel to the U.S. from North Africa and the Middle East is down 20%, and Marriott International CEO Arne Sorenson said his company experienced up to a 30% drop in visitors from those regions in February, the New York Post reports. A Marriott spokeswoman said travelers from those regions make up less than 1% of the company’s bookings but can account for up to 10% of revenue in certain luxury hotels, like the Lotte New York Palace.

Sorenson is among the first hotel executives to openly criticize the ban, but experts said many other luxury hotel executives are worried about its continued impact.

The president’s travel ban is not only hurting luxury hotels; luxury retailers are also struggling with the prospect of losing up to 6.3 million visitors this year. Many luxury retailers rely on foreigners for a sizable chunk of their sales, including Tiffany & Co.’s Fifth Avenue New York flagship, where 40% of sales go to foreigners.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Trump's New Canadian Tariffs To Spike Additional Materials Costs

Wells Fargo Moves To Foreclose On $1.3B Workspace Property Trust Portfolio

Turner Construction Hit With Cyberattack, Hackers Claim Leaks Of Military Info, NDAs

Latest Round Of Fannie Mae Senior Staff Layoffs Has Multifamily Sector Anxious

Owners Test Investor Appetite For Dublin 5-Star Hotel Market

Why Hines Is Restarting Its Development Engine

How Integrated Infrastructure Can Help AI Data Centers Deploy Faster, Build Smarter

Nvidia Buys Stake In Data Center Power Company

Invesco Cuts Fees, Adds Incentives To Quell Fund Redemption Requests

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

Nike Closes 15 Stores Amid Tumultuous Year

Large Commercial Real Estate Sales Up 30% Despite Economic Headwinds