Industry-Benchmark Analysis: Mid-Scope Hospitality, Miami FL

Overview

A 110-key full-service hotel in Miami, FL. 2012 construction. Acquired for $14,000,000 in 2024.

This is an industry-benchmark analysis — hospitality is not currently modeled as a standalone property type in the Cost Seg Smart engine, so the figures below reflect typical reclassification ranges drawn from the IRS Cost Segregation Audit Techniques Guide (Chapter 7.3, Hotels), AICPA practice aids, and aggregated published study data. A property-specific engineered analysis from Cost Seg Smart’s engineering team uses the commercial methodology with property-specific component weighting, producing precise numbers at study time.

What the analysis identifies

A full-service hotel typically reclassifies in the 30–34% accelerated range. The component inventory pulls the following share into accelerated buckets:

• guest-room FF&E (beds, dressers, casegoods, soft seating, lamps, art owned by the property)
• F&B equipment (restaurant kitchen, bar equipment, banquet kitchen, room service systems)
• spa, pool, fitness, and amenity equipment (when owned by the property)
• carpet, decorative finishes, decorative lighting in guest rooms, corridors, and public spaces
• the parking lot, porte-cochère canopy (when not structurally integral), site lighting, branded signage, landscaping

Typical reclass breakdown (industry benchmark, applied to this basis)

Land value (excluded from depreciable basis): $2,520,000 (18.0% typical land allocation for hospitality in Miami market).

Year-1 federal tax savings (industry-benchmark range)

Assuming 100% bonus depreciation per the One Big Beautiful Bill Act (OBBBA, 2025), and applying the typical reclass range to this basis:

• Reclass range applied: 30–34% accelerated
• Year-1 federal tax savings range at 37% top bracket: $1,274,280–$1,444,184
• Midpoint of range: $1,393,213

A property-specific engineered analysis produces a single defined number for the property’s actual reclass percentage; the range above represents the industry-typical band a property in this category falls within.

Sources

Industry-benchmark figures in this analysis draw from the IRS Cost Segregation Audit Techniques Guide (Chapter 7.3, Hotels), AICPA practice aids, and aggregated published study data. The Cost Seg Smart engineering team produces property-specific analyses using these benchmarks as the starting point, then refining for the specific property’s component mix, age, geographic cost factor, and operational characteristics.

Audit considerations specific to this property

1. FF&E ownership: Guest-room FF&E owned by the property is 5-year depreciation. FF&E owned by the operator under a management agreement is the operator’s depreciation. The audit examines the management agreement.

2. Brand-mandated components: Hotels operating under franchise or management brand are often required to include brand-specific FF&E. These remain 5-year regardless of brand requirement — the source of the requirement doesn’t change MACRS classification.

3. Porte-cochère: A drop-off canopy structurally integral to the building is 39-year. A freestanding canopy on independent columns is 15-year land improvement. The structural engineering documents resolve which applies.

Return profile

Want analysis like this for your hospitality property?

The figures above are industry benchmarks applied to a representative basis. A property-specific engineered analysis from Cost Seg Smart’s engineering team produces precise numbers calibrated to your property’s actual component mix, age, geographic cost factor, and operational characteristics.

Schedule a scoping call → — or see the hospitality property page for the broader methodology.

Related analyses:

• Small scope — see analysis
• Large scope — see analysis