The total property tax expense for U.S. hotels exceeds a potential $8.1 billion, according to a new study by STR utilizing 2016 HOST (Hotel Operating Statistics) data. The study found that roughly 36% of all hotel property tax expense resides in 15 counties. While 611 counties comprised STR’s HOST data, the report studied only those with a sufficient reporting sample. Overall, the median property tax expense for U.S. hotels was 3.7% of total revenue with a much higher expense percentage for limited-service properties (4.2%) than full-service hotels (3.3%).
When comparing total property tax expense for the 10 largest counties by hotel room inventory, STR found that New York County has the highest property tax expense at 9.4% of total revenues. Next is Harris County, Texas (Houston) at 5.8%. Third is Cook County, Illinois (Chicago) at 5.6%.
For the full U.S. Hotel Property Tax Study by STR, click here.