The State of California represents a powerhouse within the U.S hospitality industry and we would like to take this opportunity to provide an overview of the state’s key markets during the current challenging operating environment.
Prior to the events of September 11th, the market was performing at levels on par with 2000; however, since September 11th the market occupancy declined somewhat.
Factors both internal and external to a hotel property affect its value, and in turn, its property tax burden. In most cases, an experienced hotel appraiser, employing a proven appeal protocol, is needed to determine whether a property is unfairly assessed.
In hotel land valuation, an alternate to the sales comparison approach is the ground lease approach, where a ground rent for the land is hypothesized and capitalized into a land value estimate.