Description: ACCORDING TO THE March 2022 edition of CBRE’s Hotel Horizons national forecast report, the total revenue for a typical U.S. hotel is not expected to return to
pre-COVID 2019 nominal dollars until 2023. Accordingly, hotel owners and operators continue to seek ways to control expenses, and that can include property taxes.
One potential reduction opportunity is property taxes, according to an article from Robert Mandelbaum, director of research information services for CBRE Hotels
Research, and Mark Whitney, managing director of CBRE’s Property & Transaction Tax Services platform. Based on a sample of 3,400 hotels from CBRE’s Trends in the
Hotel Industry database, U.S. hotel property tax expenditures declined by 13 percent from 2020 to 2021. This decline put 2021 property taxes 9.9 percent below 2019
levels. Unfortunately, this compares unfavorably to the 41.3 percent decline in revenues and 57.4 percent falloff in profits during the same period. For this
analysis, profits are defined as earnings before interest, taxes, depreciation, and amortization, or EBITDA.