A USATODAY article describes the significant one-year increase of hotels’ property taxes. Local tax collectors have made adjustments as the hotel industry is experiencing some of the best times ever.
According to PKF Hospitality Research, hotel property taxes have increased at least 10% in eight cities, including 18.8% in Dallas, 13.8% in Los Angeles, and 13.6% in Chicago.
In order to offset uncontrollable costs like this, many hotel owners are capitalizing on other sources of revenue.
One of the emerging sources of revenue is a digital signage network. Hotels have a specific, desirable client base which advertisers will pay considerable sums to reach. It can deliver timely, relevant, and compelling content to the hotel guests and drive sales for the various hotel amenities as well.
As Laurence Geller, CEO of Strategic Hotels & Resorts, says, “It’s part and parcel of real estate being more valuable. … You have to get more yield to justify holding the real estate.”
