A Brief Guide to Winning a Hotel Property Tax Appeal
By Erich Baum , Senior Vice President at HVS
Factors both internal and external to a hotel property affect its value, and in turn, its property tax burden. In most cases, an experienced hotel appraiser, employing a proven appeal protocol, is needed to determine whether a property is unfairly assessed. Property tax assessors intend to assess property fairly. They want a given property's assessment to be both representative of its market value and logical in comparison to similar properties. But their job is difficult, particularly for complicated assets. Property tax appeals for hotels—particularly full-service assets with multiple profit centers and extensive personal property—are especially complex, requiring an expert in the field of hotel appraisals and seasoned in a proven methodology. The following serves as a cursory guide for owners who think their hotel's assessment might be illogically high, including the key steps to waging a successful appeal.
Erich Baum is a Senior Vice President with the HVS Boston office and has performed and overseen thousands of hotel appraisal and consulting assignments throughout North America, including an extensive list of assignments involving residential components and property tax appeal cases. Erich co-authored the 2001 edition of the Appraisal Institute’s hotel valuation textbook, has written numerous previous articles on issues related to hotel appraisal and consulting, and regularly serves as an expert witness.More from Erich Baum