To attract new hotel developments, we 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 percent of a development's 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 to 15-year period or until the funding gap is reached per the negotiated agreement.