Hotels and Resorts
Restaurants and Cafes
Bars and Lounges
Ashford Hospitality Trust
Aspen Resource Group provides highly specialized, deeply rooted, industry-specific knowledge and expertise to owners and investors in hospitality-related properties.
Expertise in Hospitality and Tourism
We are proud of our outstanding record in delivering expert representation, proper valuation and successful appeals to thousands of hospitality assets nationwide.
Understanding Trends and Issues
The hospitality industry is incredibly dynamic and impacted by economic, demographic, environmental seasonal, cultural, news, labor, marketing, technology, and other issues. Aspen Resource Group is dedicated to understanding these issues and their relevance to valuation, assessment, and appeal.
Professional, Skilled Specialists
Aspen Resource Group ensures strict adherence to current tax laws unique to hospitality industry real estate entities.
We provide the following services and focus on seeking the lowest defensible value for property tax purposes:
Pre-Acquisition Due Diligence and Analysis
Proactive Assessment Evaluation and Negotiation
State and Local Allocations and Valuation of Tangible and Intangible Assets
Realty Transfer Tax Refund Analysis
Proactive Assessment Negotiations
Income/Expense Questionnaire Review
Appeal Preparation and Representation
Real Estate Tax Projections and Guidance
Tax Bill Administration
Commercial Property Tax Consultation
We understand the nuances of the hospitality industry and the attention required to expedite negotiations, satisfy inquiries and deliver outcomes that save both time and money. The Hospitality Properties Group at Aspen Resource Group is prepared to work with you at a moment's notice and for many years to come.
UNDERSTANDING SALT PPA
State and Local Tax Purchase Price Allocation, commonly referred to as SALT PPA, ensures that hotel assets are properly valued as in three distinct categories: real estate, tangible personal property; intangible personal property or business enterprise. The benefits of SALT PPA are reduced transfer tax and a reduced basis for real estate tax.
The Aspen Resource Group's Hospital Properties Practice delivers measurable results for our valued clients.
Below are some examples of how our services have benefited businesses in the hospitality industry throughout the United States.
Challenge: The client was purchasing a well-known resort for $820,000,000 in a jurisdiction where the real estate tax is determined by the sales price in perpetuity. The acquisition included real property, tangible personal property and intangible personal property (Business Enterprise Value).
Solution: A State & Local Tax Allocation was performed in order to assign values to the three asset classes. These allocations would be used for real estate transfer tax and on-going real estate tax assessments.
Result: The allocation to real estate was $550,000,000 thus resulting in $3,000,000 in transfer tax savings and another $3,000,000 in real estate tax savings for the first year. This project has resulted in an ongoing saving that, to date, has surpassed $50,000,000 in benefit. This particular transaction was audited by the IRS and the valuation model employed was reviewed thoroughly and found to be supportable in all aspects.
Challenge: A Private Golf Club in Northern Virginia was being assessed using a speculative development approach” to value. The value for real estate tax purposes was based on what the land would bring if someone developed the land and sold houses on the property. The assessed value was $69,000,000 at the time.
Solution: We believed the assessment was illegal and counter to the “Fruit Growers Express Company vs. City of Alexandria” thus we formed a team of attorneys, appraisers and expert witnesses to mount a Circuit Court challenge.
Result: After several days of testimony by both sides, the judge awarded our client a reduction down to the value submitted by our appraisal resulting in nearly $2,000,000 in refunds and prospective tax savings.
Challenge: A client purchased a hotel for $73,000,000 in late 2012. The assessment at the time of sale was $44,000,000. The potential for an increase in the sales price would adversely affect the asset’s ability to meet pro forma.
Solution: We prepared a State & Local Tax Allocation which reflected a real estate allocation of $44,000,000 with the balance being tangible personal property and intangible personal property (Business Enterprise Value). We then arranged for a meeting with the assessor while he was preparing the subsequent year assessment.
Result: Initial negotiations resulted in a $53,000,000 assessment. We appealed to the Commercial Supervisor who agreed that the real estate allocation and income approach to value both indicated a value for $44,400,000. We accepted the offer.
Challenge: Client foreclosed on a $100,000,000 resort but neglected to perform and record a State & Local Tax Allocation.
Solution: A State & Local Tax Allocation was performed to quantify the real estate value of the going concern and a real estate transfer tax refund application was submitted along with the report.
Result: A six-figure refund was issued to the owner. Additionally, real estate tax savings in the amount of $750,000 were achieved via the appeal process.