Boulder creates lodging tax district to raise funds for tourism efforts

BOULDER — Visit Boulder, with cooperation from leaders in the city’s hotel industry, has formed the Boulder Lodging Business Assessment Area to raise money that will be used to help market and support the local hospitality sector.

Guests at Boulder hotels who stay fewer than 30 days will pay a new 2% tax that Visit Boulder expects will generate $2.1 million in its first year.

The LBAA is “quasi-governmental entity separate from the city that has the authority to assess fees and taxes, which are used for tourism-related facilities and services beyond that which the city provides and which promote the economic health of the city’s lodging businesses for the benefit of residents and visitors,” according to a Boulder city memo. 

Similar groups exist in nearby municipalities such as Fort Collins and Denver. Longmont officials are considering forming the Longmont Tourism Improvement District, which would also implement a new 2% tax on hotel stays for the purpose of marketing the city as a travel destination. 

“This is more than filling hotel rooms,” Visit Boulder CEO Charlene Hoffman said in a prepared statement. “When our hotels are successful it creates a trickle-down effect that helps our restaurants, retail stores and broader business community to thrive.”

The LBAA is being created as several high-profile hotels are coming online. 

Moxy Boulder in Boulder’s University Hill neighborhood near the University of Colorado campus began welcoming guests last year. The 189-room hotel at 1247 Pleasant St. features 10,000 square feet of ground-floor retail space, 5,300 square feet of indoor and outdoor events space, bar and lounge areas and a publicly accessible courtyard. The Moxy, managed by Vision Hospitality Group, was developed by The Nichols Partnership Inc., with funding from BMC Investments.

The Limelight Boulder hotel and conference center is on track to open this year. The conference facilities offer a 15,000-square-foot ballroom, along with another 10,000 square feet of meeting space for up to 1,000 people. Once opened, the Limelight Boulder will have 250 rooms, a ground-floor restaurant and an outdoor plaza.

Boulder “has historically provided support to the visitor industry through the allocation of a portion of the accommodations tax (20% of collections are provided to Visit Boulder annually) and the food service tax (100% to Visit Boulder annually),” according to city documents. Those sources are expected to result in $2.7 million in funding this year. 

“While this has been an important investment, the industry and Visit Boulder are

recognizing a changing landscape both locally, with the opening of a major convention center at the University, and nationally, with increased competition for major events and visitor activities. The city also recognizes the importance of being a national leader in this industry for local businesses and the broader community,” a city memo said.

Tourism marketing efforts funded by the new LBAA could be focused on attracting “larger group bookings, tapping into new markets, converting greater prospective bookings into confirmed business, and promoting slower seasons,” according to city documents. The funding could also support “a transportation program to connect hotels with the conference center and points of interest, infrastructure projects, additional signage and wayfinding, creating unique experiences for visitors, and additional resources for lodging businesses.”

Approved by Boulder City Council last month, the LBAA will be led by a board of directors that includes Joe Steiskal of Limelight, Aaron Coburn of the St Julien Hotel & Spa, Matthew Barton of the Hampton Inn & Suites, David Latessa of Boulder Marriott Hotel and Mia Opalka of Hotel Boulderado.

“The LBAA has truly been an initiative led by the industry itself from start to finish,” Boulder Mayor Aaron Brockett said in a statement. “The support demonstrated for the LBAA by Boulder hotels is a striking testament to the collaborative efforts of Charlene Hoffman and Visit Boulder to bring this program to life. We’re looking forward to seeing the LBAA’s contributions to the future of our city.”

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