New Record! Hotel Tax Assessments Up 30% From 2021


Largest Hotel Value Change in History

By Stanton Leddy, Source Strategies CEO

The Texas Appraisal Districts have completed their preliminary 2022 Hotel Tax Assessments and they indicate the largest hotel value change in Texas history.  After study, Source Strategies has some important takeaways for Texas hotel owners and operators:

  • Texas Hotel Real Estate is preliminarily valued at over $35 Billion versus $27 Billion in 2021.
  • This is a 30% increase in average valuation from 2021 and 14% from pre-pandemic 2020.
  • Hotel Room Revenue was up 58% in 2021, yet is still down 11% or $1.3 Billion from 2019.
  • New values should generate about $967 Million in tax receipts, up from $743 Million in 2021.

The results for the ten largest Texas hotel counties are as follows:

  • Of the five major counties, Tarrant County (Fort Worth) is the only to exceed the average valuation percent change of the state (37% versus 30%).
  • Nueces County (Corpus Christi) has the largest percent change versus 2021, doubling the total valuation.
  • Harris County (Houston) has the smallest valuation change versus 2021 and is still 5% less than 2020.
  • Travis County (Austin) has the highest total valuation despite having the fifth most rooms.


With such large valuation changes, hotel owners need to research their individual hotel assessment and find comparable properties to determine if the change is fair and equitable.  That’s never been more important than this year. A valuation change of only $1,000,000 could impact the bottom line by as much as $30,000.

A great way to find assessments and identify comps is through Source Strategies’ Texas Hotel Valuation Factbook.  The new 2022 Assessment issue is now available. The Texas Hotel Valuation Factbook shows you:

  • Performance and Appraisal District Assessment Data of Every Texas Hotel
  • Room Revenue Multiplier
  • Assessment Per Room
  • Three Years of Revenue and RevPAR
  • Two Years of Occupancy Percentages
  • 2021 and 2022 Appraisal District Assessments
  • Building Age
  • Averages by County, Metro and Zip
  • Average Performance and Value of Each Hotel Brand


Stanton Leddy is the CEO of Source Strategies, Texas’ leading hotel consultancy. During his career in the hotel industry, he has cultivated excellence in fact-based decision-making that leads to positive revenue growth. He has more than 15 years of experience in data analysis and market research, and served on the Finance Committee of the Choice Hotels Regional Advisory Board. In 2014, Hotel Business magazine recognized him as an “Up and Comer.” Today, he guides Source Strategies’ role as the trusted, must-have resource for the Texas lodging industry.[/vc_column_text][/vc_column][/vc_row]

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