Reclassification of Assets and Accelerated Depreciation

By Marky Moore Founder, Capital Review Group | May 20, 2012

An East Coast hotel had some choices to make. The owners of the hotel saw it growing and prospering and the ability to funnel cash back into the hotel as well as generate some real income was there, but there was also a good friend knocking at the proverbial door: the IRS. The IRS, of course, wanted their piece of the success and the hotel and its owners wanted to share, just not the amount that the IRS was asking for.

Challenges

  • Continuing to provide the best rooms and amenities in their segment of the hotel market.

  • Eliminating tax burden and ensuring the short-term and long-term growth of the hotel and the personal portfolios of the owners.

  • Utilizing tax opportunities through the assets that are currently owned without having to spend a huge part of excess cash on additional assets.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Elaine Oksner
John Hogan
Gini Dietrich
Marco Albarran
Anthony Clervi
Jan Kalanda
Bryan Green
Melinda Minton
Peter McAlpine
Gavin Davis
Coming up in April 2019...

Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.