Hotel Incentive Program

In an effort the attract new hotel developments, the City of Santa Ana is pleased to offer economic incentives for the development of four to five stars or AAA-Rated four Diamond and above quality hotels.

The City may utilize 50% of the developments Hotel Visitors' Tax (HVT) incremental revenue over a negotiated specified period of time to fill a funding gap.

Sample Calculation: A new hotel development generates $1 million in new HVT revenue to the City in its first year. Fifty percent ($500,000) will be reimbursed to the hotel after the City receives the HVT. In year two, the hotel generates $1,200,000 in HVT revenue, 50 percent ($600,000) would be reimbursed to the hotel. This agreement would continue over a 10-15 year period or until the funding gap is reached per the negotiated agreement.

For more information on the program, please see documents below:

Questions? Please call Marc Morley, Economic Development Specialist at (714) 647-6588 or mmorley@santa-ana.org.