Every community in the Napa Valley and the County as well are getting millions of dollars each year from hotel visitors. Each person who stays overnight contributes 12% in what’s called a transient occupancy tax, TOT, more commonly referred to as a bed tax. The beauty of this tax, it stays 100% with the local communities, not one cent going to the state of California.
With the average hotel room running almost $300 per night for 2015 – 2016, you can do the math. Yountville leads the way having this tax as a percentage being nearly two thirds of it total budget, predicted to add $6.8 million to its bottom line for the next year. For the total Napa Valley, this TOT generates an estimated nearly $47 million. This represents a 12% increase year over year. In case you wonder, the occupancy rate for the entire Napa Valley 73.2% according to a local hotel expert.
St Helena who has lagged in the number of hotel rooms compared to almost everyone else finally has some good news on this front. The new Los Alcobas luxury resort is set to open there in September. It features 68 luxurious guestrooms and suites starting at $695 per night. This is about a 25% increase to the 224 existing hotel rooms here. In comparison, Yountville has 450 hotel rooms and Calistoga 750 with another 200 super high end rooms being coming available in the next couple of years.
For a complete picture of how hotels fill the Valley’s community coffers read Howard Yune’s Napa Valley Register Article, More rooms, upmarket venues drive Napa Valley hotel tax revenue.