U.S. Hotel Property Taxes

U.S. Hotel Property Tax Expense Upwards of $8 Billion

According to STR's 2016 HOST data, 15 counties in the U.S. comprise approximately 36% of all hotel property tax expense.
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U.S. Hotel Property Tax Expense Upwards of $8 Billion

A study by STR’s Consulting & Analytics team shows that the total property tax expense for U.S. hotels exceeds a potential $8.1 billion.

The study, which used 2016 HOST (Hotel Operating Statistics) data, 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.

“Each county assesses and taxes differently when it comes to real and personal property for hotels,” said Raquel Ortiz, STR’s senior analytics manager. “But overall, we found that the median property tax expense for U.S. hotels is 3.7% of total revenue with a much higher expense percentage for limited-service properties (4.2%) than full-service hotels (3.3%).”

Note: Excludes Clark County, Nevada, the largest county in terms of total hotel rooms in the U.S. Data collected by STR.

When looking specifically at the 10 largest counties by hotel room inventory, New York County (9.4%) showed the highest property tax percentage of total revenue. Harris County, Texas (5.8%), and Cook County, Illinois (5.6%), ranked second and third, respectively. (Note: The largest county in terms of total hotel rooms is Clark County, Nevada, which includes the Las Vegas market. However, Clark County was excluded from this analysis due to the nature of casino hotels in Las Vegas and the lack of participation of these properties.)

Data collected by STR.

New York County ($11,091 per room) also represented the highest total property tax on a per-available-room basis, followed by Cook County ($4,368 per room) and San Diego County ($2,842 per room).

STR’s full and complimentary U.S. Hotel Property Tax Study is available at: https://str.com/host-us-hotel-tax-study.

STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.

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