Hotel Tax Proposed to help finance a new San Francisco 49ers stadium

Section 7.5 of the (non-binding) 49ers term sheet discusses a proposed extra tax on hotel room rates in addition to the current 9.5% Transient Occupancy Tax the city currently levies on hotel room charges (military personnel and government employees on business trips can get reimbursed). The term sheet mentions eight hotels and newspaper articles have mentioned they are within 2 miles (apparently as the crow flies) of the proposed stadium. These eight hotels are have voted and will tax their guests an extra amount to pay money toward the stadium. The extra tax will be 2%, bringing the total tax for guests in these 8 hotels to 11.5%.

Ironically, while the hotels were always going to face competition from hotels in other cities, particularly San Jose hotels along the light rail route, the city of Santa Clara has allowed additional competition to come from inside the city. ex-49er Joe Montana has teamed with two individuals (one the former owner of the 49ers who had to give up the team when he was convicted of a crime) and the city is going to allow them to build a hotel on 7 acres of city land across the street from the stadium. In addition to the additional competition, these 8 "stadium hotels" are also facing something else they probably hadn't planned on - Great America has agreed to close on days when there is a stadium event, including 49ers games. So the hotels will gain from a stadium event, but could lose Great America related business on weekends when Great America will only be open one day.

Santa Clara San Francisco 49ers Stadium Mello-Roos Hotels

The 8 Hotels within 2 miles of the stadium that will be made a part of a Mello-Roos Communities Facilities District and asked to levy an extra guest tax to pay for the 49ers stadium are presumed to be:

Santa Clara San Francisco 49ers Stadium Tax Hotels
HotelAddressDriving Miles Away (avg.)
Hyatt Regency Santa Clara 5101 Great America Parkway 0.76
Hilton Santa Clara 4949 Great America Parkway0.84
Avatar Hotel Santa Clara, Silicon Valley 4200 Great America Parkway1.61
Santa Clara Marriot 2700 Mission College Boulevard2.025
Embassy Suites Santa Clara - Silicon Valley 2885 Lakeside Drive2.28
The Plaza Suites 3100 Lakeside Drive2.58
Hotel Sierra Santa Clara 3915 Rivermark Plaza3.12
Biltmore Hotel and Suites - Santa Clara 2151 Laurelwood Road3.2

Other Santa Clara Hotels (not being taxed for San Francisco 49ers Stadium)

Santa Clara Hotels not subject to a Stadium Tax
HotelAddressDriving Miles Away
Days Inn859 El Camino Real4.75
Holiday Inn Express Hotel & Suites 1700 El Camino Real5.29
Ramada Limited1655 El Camino Real5.53
Vagabond Inn3580 El Camino Real5.84
Hawthorn Suites Limited Silicon Valley2455 El Camino Real4.62
Best Western Inn4341 El Camino Real5.84
Woodcrest Hotel5415 Stevens Creek Blvd.8.4
Quality Inn & Suites Silicon Valley2930 El Camino Real
Mariani's Inn2500 El Camino Real
Motel 63208 El Camino Real
Pacific Inn2505 The Alameda
Synergy Carlyle4515 Carlyle Court
St Francis Motel2222 The Alameda
Wellesley Inn5405 Stevens Creek Boulevard
Candlewood Suites481 El Camino Real
Granada Inn2515 El Camino Real
Econo Lodge3477 El Camino Real
Hotel Stratford2499 El Camino Real
Bella Vista Inn3550 El Camino Real
Synergy Estancia1616 Hope Drive
Synergy River Terrace700 Agnew Road

Silicon Valley Hotel Room Rate Taxes (Transient Occupancy Tax)

CityHotel Room Rate Tax
Santa Clara9.5%
San Jose10%
Mountain View10%
Palo Alto12%