May 18, 2010: Steve Rushmore, President and Founder of HVS, the global leader in hospitality consulting and services, is pleased to announce the firm’s newest division - HVS Property Tax Services.
“HVS Property Tax Services has been formally established to meet the increasing demand of hotel owners seeking to reduce their property tax expense during the current economic climate,” explains Rushmore. “This new HVS division will specifically assist hotel owners and operators in analyzing their overall tax burden, and then represent them in the appeal process. HVS’s experience in property tax valuation spans 30 years, and our colleague Tom Dolan has been representing owners’ interests for the last ten.”
“In the current economic environment, controlling expenses is a critical component of a hotel's profitability,” adds Dolan, who serves as Managing Director of HVS Property Tax Services and the HVS Boston office. “Property taxes, when times are good, are often an overlooked expense. In the present economic environment, hotel valuations have declined in nearly every market, and there has never been a more appropriate time to review your taxes.”
As Dolan explains, “assessors will often use a recent sale or the cost approach to establish a hotel’s value for property tax purposes. The cost approach is often based on unsubstantiated costs and depreciation. HVS Property Tax professionals utilize the hotel’s income, which is the basis for the ‘Rushmore Approach,’ the most commonly accepted methodology among assessors. When applied appropriately, the ‘Rushmore Approach’ extracts intangible business and personal property value. HVS’s analyses result in the true market value of the hotel building and land, and provide the most accurate property tax estimate for this unique type of property.”
“Property tax assessment increases that were warranted in an expanding economy can prove unfair in an economic decline. It is therefore prudent to look at property taxes as a way to improve margins as hotels enter into challenging times,” Dolan adds.
“If you are uncertain about the accuracy of your latest property tax assessment, we invite you to discuss the procedures for an appeal with an HVS property tax specialist. HVS’s understanding of the myriad tax systems comes from 30 years of experience in hotel markets throughout the United States and our knowledge of the criteria used by numerous municipalities. We strive to represent owners in their quest for a fair and equitable valuation. Tax assessors can call on HVS in re-valuation years to establish accurate, thorough assessments that lead to fewer appeals.
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