Tax Advisory

The service industry is among the highest taxed industries in the U.S., which makes hotels the single highest taxed real estate asset class. Real property, personal property, transfer, income and other taxes have a direct impact on the value of the real estate and returns to the investors. Often, property taxes (real and personal) are the single highest expense in an owner’s P&L, next to direct labor.  

Hotel owners, developers and other stakeholders all stand to benefit from an expert review of taxes before development even begins, or before an acquisition or disposition of the real estate. A full tax analysis that measures the overall burden and interrelationship to the other will maximize the return, and prevent unnecessary taxation. HVS can represent and advise your organization on all aspects of taxes and how they interrelate, including:

  • Transfer
  • Real Property
  • Personal Property
  • Other Municipal Taxes

We are fully focused on the hospitality industry. We understand hotel real estate and the intangible value that brand and management deliver. Our comprehensive sales and operating databases allow us to better assist you during the acquisition, disposition, and assessment process by comparing your asset with competitive and comparable hotels in much more detail, with far better support. We work directly with your internal finance, acquisition, and property tax team to fully understand your tax situation, which maximizes your returns.

 

How We Help Our Clients

  • Purchase price allocations upon transaction for purposes such as transfer tax, real property tax, and personal property tax for buyers and sellers
  • Identify tax incentives for new construction
  • Provide real property tax review and representation for appeals to reduce property tax expenses
  • Provide personal property tax review and representation for appeals and county/state audit programs
  • Perform cost-segregation studies for internal accounting purposes upon acquisition
  • Prepare business valuations for additional asset leverage
  • Identify intangible value-related brand and management contracts, leading to reduction in real property tax
  • Offer assessor services to help improve the accuracy of valuations, thus limiting appeals and maximizing tax revenues