Hotels & Hospitality cost segregation in Pennsylvania.

Why hotels and hospitality assets reclassify well in Pennsylvania

Pennsylvania straddles two major industrial markets — Philadelphia and Pittsburgh — and the Lehigh Valley logistics corridor. Multifamily, industrial, and adaptive-reuse all see heavy activity.

Hotels & Hospitality properties have a particular profile that makes cost segregation especially valuable: FF&E, decorative finishes, kitchen and pool systems — the highest-yielding category. The shell sits on a 39-year recovery period under MACRS — but every hotels & hospitality is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a hotels & hospitality in Pennsylvania, TDA studies typically reclassify 32–40% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.

Pennsylvania markets we serve

We deliver hotels & hospitality cost segregation studies across Pennsylvania, including Philadelphia, Pittsburgh, Allentown, Erie, Reading. Engineering-based methodology and RSMeans cost data on every engagement.