It’s inevitable. Hotel real estate taxes will be going up because values are increasing. That means you need to figure out how much your property’s growing value might be hampered by increasing property taxes. A tax consultant who knows hotel assets and the local jurisdiction should be able to help you figure out your exposure.
“Taxes are just one thing to look at,” says Steve Kirby, principal at Mumford Company. “If you wait a year or two and the values start going down, your taxes will be lower but your recapture will be that much further in the future, which will only compound it.”
