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Property Types

Hotels: three property types stacked into one building

A guest-room block, a food and beverage operation and an amenity floor. All three reclassify well.

Deprecio 7 May 2026 4 min read

Guest rooms

Casegoods, headboards and affixed millwork, decorative lighting, carpet and luxury vinyl, wall vinyl, window treatments, bath accessories, in-room refrigeration, PTAC power drops, and the low-voltage layer — guest Wi-Fi, television distribution and electronic door locks.

A modest per-key figure multiplied across 120 keys is a large category on its own.

Food and beverage

Breakfast areas and full restaurants carry the same profile as a standalone restaurant: hoods, refrigeration, dedicated gas and power, bar millwork, decorative lighting. Where a hotel has a full kitchen, the restaurant analysis applies to that portion.

Amenities and site

Pool equipment and decking, fitness equipment, meeting-room AV and decorative lighting, porte-cochère structures and paving, parking sized for full occupancy, landscaping, water features and signage.

Property improvement plans

Franchise agreements mandate periodic renovation. Each PIP generates qualified improvement property at 15 years with full bonus eligibility, and disposes of components still carried on the schedule.

The partial asset disposition election on a PIP is frequently worth more than the study fee by itself — but it requires knowing what the replaced components cost, which is what a study establishes.

A classification note

Hotels are nonresidential real property on a 39-year life, not residential rental at 27.5, because guests are transient occupants rather than tenants of dwelling units. The same applies to most true transient lodging.

Typical range

24% to 38%, with full-service and resort properties at the top and limited-service exterior-corridor properties lower.

Where this stops. This article is general information, not tax advice, and it cannot account for your basis, your entity, your participation or your state. A free feasibility review takes twenty minutes and gives you an answer specific to your property.

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