There are many different types of hotels in Ontario, with a wide range of offerings. These include:
- small budget hotels
- large convention hotels
- luxury hotels
With such a wide variety of hotel types, our assessors use performance metrics to assess their value. These metrics include:
- Revenue per available room.
- Ratio of room operating costs to room revenues.
- Other departmental and operating expense ratios.
Where the income approach to valuation is used to value the hotel, the amounts deductible for management fees and for personal property should not exceed 5% and 15% respectively, unless the we can demonstrate that another percentage is more appropriate.
Condominium hotel units
Condominium units are sometimes used as hotel units. You must sign and submit a condominium statutory declaration form if you are changing the use of your condominium unit from:
- a regular long-term rental or owner occupation to a hotel unit.
- a hotel unit to a regular long-term rental or owner-occupied unit.
This declaration will state whether a unit will be used as a hotel unit for the upcoming and subsequent tax years or whether it will cease to be a hotel unit.
Your declaration must be made by June 30 of the tax year prior to the year for which you are making the declaration.
For more details on how we assess hotels, please see our hotel valuation methodology guide.
Current Value of Hotels - section 45.3 of Ontario Regulation 282/98 of the Assessment Act.
Condominium hotels - section 45.3.1(6) of Ontario Regulation 282/98 of the Assessment Act.
Filing your Property Income and Expense Return
By filing your Property Income and Expense Return, you help us ensure that your property values are based on up-to-date and accurate information.
Learn more about filing your Property Income and Expense Return.