Hotels continue to be built or renovated, but continuing issues like labor shortages, inflation and potential tariffs have made it a challenge. Hotel Business spoke with Graham Flight, VP, cost management, Cumming Group; Ethan Mabe, VP, design-build, Parkway Construction & Architecture; and Dennis Markham, senior director, Innspace, to get their takes on the year so far and what lies ahead.
—Gregg Wallis
How has 2025 been so far in terms of the projects you are working on and have in development?
Flight: 2025 started off with strong momentum. We have a full pipeline, and many owners and developers are ready to move forward. We haven’t seen projects pausing because of the economic uncertainty, but we have seen conversation shift toward how to proceed. We have been helping our clients reassess scopes, budgets and delivery strategies to ensure their projects are responsive to the realities on the ground. While this reflects the overall trend, markets like Texas and Florida continue at full steam.
Mabe: Certain markets are slower than others, but the hospitality market is very active for us right now. We have close to a dozen new-build hotels in various stages of construction, with several more in our design pipeline.
Markham: 2025 has been a strong year so far for Innspace. We’re actively working on a wide range of hospitality renovation projects across the country, including unique and challenging environments such as national parks. Notably, we’re managing hotel renovations in Denali National Park, AK, and Grand Canyon National Park, AZ. Our pipeline remains healthy, with consistent demand from hotel owners, developers and management groups who rely on our integrated design, procurement and construction services to deliver cost and schedule assurance—especially in complex or remote locations. We’re optimistic about continued growth through the remainder of the year.
Graham Flight
Cumming Group
How do you think any tariffs will affect how projects move forward?
Flight: We recommend analyzing tariff impacts on a project-by-project basis. Strategic sourcing can help mitigate cost increases, particularly in renovations, where teams can carefully control the origin of finishes, drywall, carpet and other key materials. Tariffs are undoubtedly having an impact on projects, but this kind of targeted and strategic approach can minimize that impact and avoid more disruptive outcomes like cancellations or pauses.
Mabe: It is hard to say what true impact tariffs are playing or will play on pricing, but for now, we are seeing some of the best market pricing that we have seen in years. Our subcontractor bid response is up, and the numbers are very competitive. At the same time, we are getting constant news from vendors and subcontractors about the potential impact of tariffs. So far this “impact” hasn’t been defined or quantified, but it is warned against almost daily.
Markham: While tariffs and material cost fluctuations are a reality in today’s market, our integrated approach helps significantly de-risk the process for our clients. We have a unique line of sight into how and where materials are sourced—and how potential tariffs may impact product availability or pricing. Our team proactively monitors global supply conditions and aligns project planning with current and anticipated realities. This level of integration gives owners and operators the cost and schedule assurance they need, even in uncertain economic conditions.
Dennis Markham
Innspace
What are some of the other challenges you are facing this year?
Flight: The industry is facing familiar challenges, such as inflation, labor shortages, regulatory hurdles and supply chain volatility. If pressed to identify our greatest concerns, labor shortages and economic uncertainty stand out as they significantly impact both timelines and pricing across all sectors. None of these challenges are new, but they continue to evolve, requiring vigilant attention for effective cost control. But, again, these issues are all solvable, and we are confident the industry will successfully navigate around them.
Mabe: Uncertainty around tariff pricing and stubbornly high interest rates have caused developers to react slowly to getting projects kicked off. We have spent a lot of time pricing potential projects, and even when the pricing is in the preferred range, the projects are still slow to move forward, leading us to believe interest rates continue to be very impactful.
Markham: Labor availability continues to be a factor in certain markets, and we’re also seeing persistent pressure around lead times for key materials. However, because our team manages design, procurement and construction, we’re able to adjust quickly when supply or labor variables shift.
Navigating evolving brand standards and ensuring alignment between ownership goals and brand expectations is another challenge. We’re well-positioned to facilitate those conversations early and avoid costly rework or delays. Our focus remains on delivering clarity, predictability and value throughout the project lifecycle.
