Hotel & Hospitality Property Tax Protest and Appeal

Hotels are valued from income, so occupancy, rates, expenses and the cap rate matter. We help you test the assessment, file the protest and present the case.
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Property Taxes Too High? Fight It.

Protect yourself from excesesive and inaccurate property taxes. Start with a free consult to find out how much you may be able to save.

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Never Overpay Again.

Property taxes are one of the biggest expenses for any owner. Miss a single exemption or let the county over-value your property, and it could cost you thousands every year.

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The appeal process is complex and time-consuming by design. That's exactly why we handle it for you.

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Our state-licensed consultants know how to file for every exemption and build a case that gets results. With data on 158M+ properties, we know what your home should actually be assessed at—and we'll prove it.

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You've got enough expenses. Your property tax bill shouldn't be higher than it needs to be - and with our "no savings, no fee guarantee" we only get paid if you see a reduction.

Key Property Tax Stats

Last updated: October 9, 2026

  • Districts typically value this property type with the income approach, which the Comptroller says uses income and expense data to estimate what an investor would pay for the income stream (Texas Comptroller).
  • When the income method is used, the chief appraiser must analyze comparable rent or income, expense and capitalization-rate data (Tax Code §23.012).
  • Intangible personal property is not taxable in Texas, with limited exceptions (Tax Code §11.02).
  • You can ask the district for the data, schedules and formulas it will use at the hearing (Tax Code §41.461).
  • For 2026, the 20% circuit breaker applies only to non-homestead real property valued at $5,320,000 or less and expires December 31, 2026 (Texas Comptroller).

Biggest Pain Points

Check Whether Your Hotel Is Being Taxed on Business Value

A hotel is an operating business as well as real estate. Texas does not tax intangible personal property (Tax Code §11.02), so ask the district how it separated brand affiliation, franchise agreements, workforce and goodwill from the value of the real property. If its income valuation captures business income, you can challenge it. Other states have their own rules; see our California page.

Operating Expenses May Have Changed Your NOI

Labor, insurance and energy costs may have changed your net operating income. When the income method is used, the chief appraiser must analyze comparable operating expense data and consider historical information and trends (Tax Code §23.012). Document your actual expenses and compare them with the district's assumptions.

Hotel Valuation Is Specialized

Hotels are not valued like office buildings or apartment complexes. The primary method is the income approach (Texas Comptroller), which uses RevPAR (revenue per available room), ADR, occupancy trends and a capitalization rate. Cap rates are supposed to be estimated from comparable data (Tax Code §23.012). FF&E (furniture, fixtures and equipment) is tangible personal property, so check that it is separated from the real estate value.

How it Works

1. Free Hotel Property Analysis

Provide your property address and room count. We compare your current assessment with market data, RevPAR trends and your operating expenses.

2. We Build a Hospitality-Specific Case

We use your actual hotel financials (STR reports, P&Ls and operating statements) to build an evidence-based case file. We document occupancy and RevPAR trends, operating expense changes, and the separation of intangible and personal property from the real estate value.

3. We Prepare and Present the Protest

Where TaxDrop Pro is available, we handle the protest process. We present hotel-specific income analysis to the appraisal review board.

4. Know What It Costs

Commercial protests are handled through TaxDrop Pro, our full-service option. Pro is 1% of the assessment reduction, with no fee unless we reduce your assessment, and is available in select Texas counties (see the pricing page). Check your estimated savings or learn more about how TaxDrop works. Read our guide on who pays the most in property taxes.

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End Unnecessarily High Property Taxes this Year

TaxDrop makes it easy to never pay more than you should by securing all exemptions and protesting high assessments annually. Book a call now to see if you're overpaying and how to get it back.

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Hotel Property Tax Protest FAQ

Common questions from hotel owners protesting property tax assessments in Texas.

How are hotel properties valued for property tax purposes?

Hotels are typically valued with the income approach, which estimates value from the income the property can generate (Texas Comptroller). Assessors may also use the sales comparison or cost approach. Ask the district how it separated business value from the real estate value.

What is the hotel property tax protest process in Texas?

You receive a Notice of Appraised Value from the county appraisal district and may protest to the Appraisal Review Board. The deadline is May 15 or 30 days after the notice, whichever is later; check your notice for your dates. The process starts with an informal meeting and then a formal ARB hearing if no agreement is reached. You may appeal further to the State Office of Administrative Hearings or district court. TaxDrop Pro handles the process in select Texas counties.

What happens in California?

California appeals go through the county Assessment Appeals Board, and filing windows and rules vary by county. See our California page and check your county's deadlines.

What intangible assets are excluded from a hotel assessment in Texas?

Intangible personal property is not taxable in Texas (Tax Code §11.02). Brand or flag, franchise agreements, management contracts, workforce and goodwill are typically treated as intangible business value. FF&E is tangible personal property, not real property.

What is RevPAR and why does it matter?

RevPAR (revenue per available room) is average daily rate (ADR) multiplied by occupancy. A lower RevPAR is evidence of weaker income, which can support a lower real estate value under the income approach. STR reports are a common source for RevPAR data.

What is the income approach for hotels?

The income approach projects gross revenue, deducts operating expenses and capitalizes the resulting net operating income with a capitalization rate. The statute directs the chief appraiser to analyze comparable data for income, expenses and rates when the income method is used (Tax Code §23.012).

What is an unequal appraisal protest for a Texas hotel?

An owner can protest an unequal appraisal to the ARB (Tax Code §41.41). It compares your appraised value with comparable properties, such as per-room values, rather than arguing market value alone.

How much does TaxDrop cost?

Commercial protests are handled through TaxDrop Pro, our full-service option. Pro is 1% of the assessment reduction, with no fee unless we reduce your assessment, and is available in select Texas counties (see the pricing page). Savings depend on the property and the assessment, and are not guaranteed.

Do I need a specialist for a hotel protest?

Hotel valuation involves separating real property from personal property and intangibles, so experienced help can be valuable. TaxDrop Pro offers full service in select Texas counties.