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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.
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One of the significant expense items incurred by a hotel is the property taxes paid to local municipalities.
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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.
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If your hotel's property tax assessment has not dropped in the last five years, you may be paying more than your share of real estate.
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Today's hotel market is in a state of chaos. The overbuilding of the 1980s coupled with the recession of the 1990s has sent hotel occupancies in many parts of the country plummeting.
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Economic life is the period when improvements to a property contribute to property value. Hotels and motels have a definite life span of positive cash flow.
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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.
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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.
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This article shows the pitfalls of RevPAR, and elaborates on the advantages of using a complementary performance measure, GOPPAR.
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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.