News/Blog

August 19, 2022

City Council Approves Revisions to the Hotel Incentive Policy

By Brittney Sherman

At the August 17, 2022 City Council Meeting, Economic Development Director Matt Mahood presented revisions to the Hotel Incentive Policy (HIP) to allow for greater access and participation from all citywide hotels.

The revisions unanimously approved by the City Council, included the following:

-Adjust the Baseline TOT year to FY 2019/2020, lowering the threshold for most hotels to participate.

-Remove the requirement for existing hotels to increase in chainscale in order to participate in the program.

-Increase the maximum rebate for existing hotel renovations from $100k to $250K.

-Include an optional 5-year extension of the rebate timeline, to be approved by City Council, at a reduced rebate rate of 33%

There were no significant changes to the HIP as it relates to new hotel development.  New hotel developments are still eligible for a TOT rebate based on 50% of the cost of off-site improvements. 

The Economic Development team believes the approved revisions to the HIP will open the door for additional reinvestment in the existing Morgan Hill hotels and assist with the recruitment of new hotels. To read the updated Hotel Incentive Policy click HERE! Read the updated Hotel Incentive Policy HERE!

Have questions? Contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov