October 23, 2008: Spearheaded by Senior Vice President Tom Dolan, HVS now offers property tax advisory services tailored to the lodging industry.
“In the current economic environment, controlling expenses becomes an integral part of a hotel's profitability. Property taxes, which are calculated by multiplying the tax rate by the assessed value of the property, are an often overlooked expense,” said Mr. Dolan. “Property taxes can be controlled through an accurate and up-to-date valuation of a hotel's real property assessment, potentially resulting in legitimate decreases in this costly expense category.”
Assessors often use a recent sale to establish a hotel’s value for property tax purposes, and this assessment includes the transfer of all personal property and “intangible value.” HVS Property Tax professionals utilize the “Rushmore Approach” to extract intangible business and personal property values. We thereby arrive at the true market value of a hotel building and land parcel to provide the most accurate property tax estimate for this unique type of property.
“The nature of the hotel industry is cyclical, and we’re headed into a downturn,” said Mr. Dolan. “Property tax assessments that were warranted in a growing economy can prove unfair in an economic decline. Hence, it’s prudent to look at property taxes as a way to improve margins as hoteliers head into challenging times.”
Our understanding of myriad tax systems comes from years of work in hotel markets across the U.S., and we strive to represent owners in their quest for a fair and equitable valuation. Tax assessors can call on HVS in revaluation years to establish accurate, thorough assessments that lead to fewer appeals. Please contact Tom Dolan (617.424.8912,
email@example.com) or Chris Elder (970.222.1679,
firstname.lastname@example.org) for more information.
HVS is a global consulting and services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. We are client driven and dedicated to providing the best advice and services in the industry. Please visit us at www.hvs.com to learn how HVS can successfully lead your next venture into the realm of hospitality.
Senior Vice President, Director of Boston Operations
3 New England Executive Park
Burlington, MA 01803
Phone: +1 617.424.8912
Fax: +1 617.424.8901