Anaheim City Council considers incentive to lure high-end hotels

The Anaheim City Council is considering a new initiative that would allow high-end hotels to keep much of the room-tax that is paid by their guests, in order to lure more upscale resorts to the city.

Under the proposal, new hotels that meet AAA’s four-diamond rating would be allowed keep 70 percent of their room-tax for up to 20 years.  Existing hotels that renovate in order to receive the four-diamond rating would receive a smaller incentive.

Tom Tait, Mayor of Anaheim, believes the proposal would “blow a major hole” in the finances of the city. since hotel taxes account for almost half of the city’s revenue.

Currently only the Disneyland Hotel and Grand Californian Hotel & Spa meet the AAA four-diamond rating.

Source: Orange County Register