Cantio Hotel construction budget feeling impact of import tariffs

Muncie’s newest hotel is nearing completion.  As IPR’s Thomas Ouellette reports, the Cantio hotel in the Village business district is estimated to hit its advertised timeline, despite rising project costs.

View Transcript

Audio Transcript

00;00;00;02 - 00;00;15;00 Thomas Ouellette Jeffrey Brown is CEO of Schahet Hotels, a majority owner of the Cantio at the corner of McKinley and University Avenues. He says cost overruns on the new hotel is due to a number of reasons, including added features and importing materials. 00;00;15;02 - 00;00;26;24 Jeffery Brown Tariffs has definitely impacted us, unfortunately, in the wrong direction. That's really risen some of the costs. Some of it is just getting things made and getting them shipped. 00;00;26;26 - 00;00;39;24 Thomas Ouellette The hotel is attached to a new Ball State University Performing Arts Center. Brown says the projects have a combined cost of more than million. The buildings anchor a corner that's been the traditional entrance to the village. 00;00;39;28 - 00;00;48;09 Jeffery Brown We've already heard from people around here. Even food restaurants that are looking forward to us coming just because of the people will attract coming into this area. 00;00;48;13 - 00;00;58;03 Thomas Ouellette Officials say the Performing Arts Center is on track to open in December, with the hotel set to open in early 2027. I'm Thomas Ouellette in Muncie.

Jeffery Brown is CEO of Schahet Hotels, a majority owner of the Cantio at the corner of McKinley and University avenues.  He says cost overruns on the new hotel is due to a number of reasons, including added features and importing materials.

“Tariffs have definitely impacted us unfortunately in the wrong direction,” he said. “That’s really risen some of the cost. Some of it is just getting things made and getting them shipped.”

Read More: Ball State economist predicts tariffs will help stagnate Indiana job growth in 2026

The hotel is attached to a new Ball State University Performing Arts Center.  Brown says the projects have a combined cost of more than $60 million.

The buildings anchor a corner that’s been the traditional entrance to the Village.

“We’ve already heard from some people around here,” said Brown, “even food restaurants, that are looking forward to us coming, just because of the people we’ll attract coming to this area.”

Read More: Small businesses in Muncie’s Village live and rock through construction

Brown says The Cantio Hotel will add several food and beverage options for Village patrons.

The Cantio Hotel and Performing Arts Center are part of several other ongoing projects in the Village revitalization program, with the Center for Innovation and Collaboration being the first of the projects to be completed.

Read More: Ball State plans for outdoor gathering green space in Village redevelopment project

The hotel and Performing Arts Center is not the only Village revitalization project to be running behind. Ball State President Geoffrey Mearns says the mixed-use Barnes & Noble bookstore and 120 apartments slated for another corner of University and McKinley avenues is probably at least a year behind.

Officials say the Performing Arts Center is on track to open in December, with the hotel set to open in early 2027.

Thomas Ouellette is our reporter and producer.  Contact him at thomas.ouellette@bsu.edu