Industry Insight: A Favorable Forecast for Hotel Owners with New Tax Bill
Industry Insight from the desk of Micajah P. Sturdivant, Chief Executive Officer, MMI Hospitality Group
A newly signed federal tax bill brings meaningful, permanent relief to hotel owners across the country. We recently shared the following highlights with the owners we represent and thought our peers might also find them helpful. The new federal budget bill preserves and expands several tax advantages important to hotel ownership, including:
These changes create meaningful opportunities for reinvestment and succession planning across our industry.
A newly signed federal tax bill brings meaningful, permanent relief to hotel owners across the country. We recently shared the following highlights with the owners we represent and thought our peers might also find them helpful. The new federal budget bill preserves and expands several tax advantages important to hotel ownership, including:
- 20% Pass-Through Deduction Stays: LLCs and S-corps can continue to deduct up to 20% of qualified income.
- Estate Tax Relief: Higher exemption — $15M individuals / $30M couples — benefits family-held properties.
- Bonus Depreciation Restored: 100% first-year write-off for qualifying renovations and equipment.
- Interest Deduction Fix: EBITDA standard returns, improving financing flexibility.
- Labor & Opportunity Zone Incentives: Expanded deductions and extended redevelopment credits.
These changes create meaningful opportunities for reinvestment and succession planning across our industry.