Valuing a Hotel’s Real and Personal Property Separately

Hans Detlefsen | December 7, 2016

How to Separate Tangible Personal Property Value from Real Property Value in Hotels A hotel's value can be categorized into real property and personal property. Real property includes the land and improvements. Personal property includes tangible1 and, sometimes, intangible2 personal property. When valuing a hotel for ad valorem tax purposes, it is often necessary to separate the tangible personal property value from the real property value, as many jurisdictions tax the real property separately. This article describes a methodology for separating the tangible personal property from the real property value of hotels. Introduction by Exa...