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These properties are almost always assessed on the Income Approach to value. Motels have minimal other income with almost all of their income generated from room rental. Hotels often have meeting rooms, ballrooms, restaurants, and bars that generate income. The mix of income on hotels can make a huge difference in the value of your property. Typically assessors consider all income the same. We will meet with you to review the different ways to look at this.

Factors to consider in getting your hotel assessment reduced

  • Has your occupancy dropped at the end of the year?
  • When was your last soft cost remodel?
  • When was the last hard cost remodel?
  • Is a new product on the market that might be hurting your occupancy?
  • Is there deferred maintenance or roof repairs needed?
  • Has business value been deducted?
  • Are you self-managing?  If you self-manage a hotel a management fee can be expensed in an income analysis of your hotel.
  • How are you handling your Furniture, Fixture, and Equipment?  A Furniture, Fixture, and Equipment reserve are typically added to expenses in an income analysis.
  • Do you pay a Franchise Fee?  Franchise fees are also an acceptable expense.
  • Is restaurant revenue being considered?  High restaurant revenue is not guaranteed in the future and might be a reason for a higher capitalization rate.