Hotels generate a significant source of revenue for many California cities. Each hotel patron pays Transient Occupancy Tax (TOT). According to the California Local Government Finance Almanac, TOT rates range from 3.5% in the City of Bell to 15% in the City of Anaheim. Thus, many cities welcome hotels with open arms and strategically attempt to attract hotel developments.
RSG has helped a number of cities determine whether there is hotel demand in their city. Our “hotel market assessments” answer the following questions:
- What hotels are currently in the area, and how are they performing?
- What hotels are planned and currently under construction in the area?
- After the hotels that are planned and currently under construction open, will there still be unmet demand in the area?
- Which sites in the community would be suitable for hotel development?
- If a hotel could be developed in the community, which hotel brands or level of service would it/they likely be?
Call us to find out whether new hotels will benefit your city and how to attract and develop them.
Written by Dominique Clark, an Associate at RSG