A new California bill, AB 1869, could change how hotel investment companies are taxed and regulated. Jon Bortz, CEO of Pebblebrook Hotel Trust, which owns Chaminade Resort & Spa in Santa Cruz, says the measure – designed to ensure companies that get the tax advantages of being “passive property owners” are just owners, and are not also running them behind the scenes – could force significant changes at the well-known local resort if it becomes law. Bortz warns that it could lead to higher taxes, declining property values and potential impacts on retirement investments tied to hotel real estate. Critics of the bill argue it could also discourage long-term owners from investing in California’s hospitality industry. The bill is scheduled to be heard by the Assembly Appropriations Committee on Thursday.
