Tax Breaks for Luxury Hotels

Corporate giants, Walt Disney Co. and their affiliates of Hong Kong-based Wincome Group will be receiving giant tax breaks for building hotels in Anaheim. 

Three hotel projects are expected to open between 2019 and 2021, combining for a total of 1,910 rooms. The Anaheim City Council agreed in the early hours of July 13, 2016, that the partial rebate on the city's 15 percent transient occupancy tax would fall under a hotel incentive program introduced about a year ago.

The new program states that developers of new hotels will get an astounding 70 percent of the tax returned to them for the first twenty years. City documents show the three hotels that will be built are expected to receive $28 million a year in reimbursement for over 20 years and pay back about $14 million to the city coffers in bed and sales tax over the 20 years.

The city currently receives $3.4 million from two older hotels owned by the Wincome affiliates and also a parking lot where Disney is planning on constructing their hotel.

The project will include:

• Disney's plan to construct a $672 million, 700-room hotel and parking lot near Downtown Disney along with three other Disney hotels: Disneyland Hotel, Grand Californian, and Paradise Pier.
• Wincome affiliate, Good Hope Internal, has a plan for a $208 million, 580-room hotel on Harbor Blvd., across from Disney California Adventure, after they demolish the current standing hotel and plaza, the Anaheim Plaza Hotel & Suites.
• Wincome affiliate, FJS Inc., plans a $225 million, 630-room project after the complete demolition of the Anabella hotel next to the Anaheim Convention Center.
• Disney has said it plans to include priority access to the theme parks and rooftop restaurants for brand-new hotel guests.

Tax breaks are a great incentive to construct a brand-new hotel. Renovate your property with hospitality construction services from Parkwest General Contractors. Contact us to build your business.