Paradigm Tax Group Industry News

Paradigm Tax Group Industry News

Stay informed with the most current Industry News that affects your business and impacts property taxes across the nation.

    STR: U.S. hotel property tax expense exceeds a potential $8.1 billion

    23 Feb, 2018

    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%.

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    For the full U.S. Hotel Property Tax Study by STR, click here

    Topics: Real Property, Personal Property, Hospitality, Hotels