Holiday Inn Express may come to Leander


Leander does not have a hotel at this time and is mising out on revenue, particularly the Hotel Occupancy Tax. Visitors now must find lodging in nearby towns. 

However, Leander’s first hotel could break ground this summer behind the H-E-B Plus shopping center by US 183.

The hotel in question, the Holiday Inn Express, would be located by West Broade Street and West Metro Drive. The building would have more than 90 rooms. According to city officials, the owner is considering either adding a 5,000-square-foot or 10,000-square-foot convention center or a restaurant.

During last week’s meeting, the Leander City Council discussed incentives for the hotel. City staff recommended an incentive package that would give the owner a rebate of 50 percent of the property tax generated by the hotel to the owner for the first five years of operation and 25 percent for the following three years, to be funded from Hotel Occupancy Taxes generated by the facility. If the company does move forward in construction of a convention center, other incentives may be considered. 

 If the hotel operated with a 65 percent occupancy rate, it could generate $150,000 in HOT taxes annually, $2,000 in sales tax revenue for the city and $18,000 in secondary benefits. Secondary benefits could include giving business to local establishments such as Leander restaurants. 

The incentive package was approved unanimously.