During periods of economic stress in the hotel industry, smart owners and operators carefully review their hotel's property tax assessment to determine whether there is sufficient justification to seek a reduction.
THe valuation of hotels and motels is a highly specialized form of real estate appraisal, requiring not only a thorough understanding of the many principles and procedures of general appraising, but also an in-depth knowledge of hotel operations.
While working on a property tax appraisal for a 500-room downtown Sheraton hotel, we were confronted with a comparable sale which, on the surface, did not support our opinion that the subject property was overassessed.
With declining occupancies a problem in many areas of the country, along with increasing mortgage interest rates and inflation, it is a good time to review your property taxes and possibly commence a formal appeal to have them reduced.
While some argue that an additional hotel can create positive impact on the chain by increasing its brand awareness, most impact disputes focus on the potential loss of business when a traveler has a choice between two hotels with identical brands.