Compare 10 hotel cost segregation firms for 2027, from engineering specialists to national CPA firms, with hospitality case studies and audit support.
Hotels hold more short-life property than most commercial buildings. Guestroom finishes and millwork, FF&E, PTAC units, specialty lighting, signage, kitchens, pools, parking and landscaping can often move from the 39-year schedule into 5, 7 or 15-year classes. This list is for hotel owners, developers and hospitality investors weighing cost segregation for hotels on an acquisition, a new build or a renovation. For the basics, read our guide on how cost segregation works.
We chose firms that publish hotel case studies or hospitality-specific guidance, use engineering-based methods, and offer audit support. The list mixes cost segregation specialists, national accounting and advisory firms with hospitality practices, and a smaller provider with virtual inspections.
The key rule for 2027: the One Big Beautiful Bill Act, signed July 4, 2025, made 100% bonus depreciation permanent for qualifying property acquired and placed in service after January 19, 2025. Hotels acquired on or before that date stay on the old phase-down, which reaches 0% for property placed in service in 2027. Hotel depreciation outcomes depend on your dates, passive loss limits and exit plans, so confirm with your CPA.
Hotel Cost Segregation Firms At A Glance
Company
Headquarters
Best For
Standout
Source Advisors
Arlington, TX
Full-service and select-service hotels
Published 122-unit hotel case study
KBKG
Pasadena, CA
Owners who want an independent specialist
Hotel, casino and golf course case studies
Engineered Tax Services
West Palm Beach, FL
Smaller and independent properties
Licensed engineering firm with hotel case studies
Kroll
Global firm
Institutional owners and REITs
Dedicated hospitality advisory group
Leyton
International (US practice)
New builds and large acquisitions
Published $90 million new-build hotel case study
Forvis Mazars
National CPA firm
Owners wanting broad hospitality tax planning
Hospitality group covering 179D and 163(j)
Withum
Founded in Milltown, NJ
Owners already working with a national CPA firm
Publishes a 15% to 50% hotel reallocation range
McGuire Sponsel
Indianapolis, IN
Owners whose CPA wants a specialist partner
Hotels and resorts listed as a core industry
Capstan Tax Strategies
Dresher, PA
Owners of mid-size hotels
Attorneys, engineers and tax experts on one team
R.E. Cost Seg
Houston, TX
Boutique hotels and motels
Virtual inspections and published fee floors
Best Hotel Cost Segregation Firms In 2027
1. Source Advisors — Hospitality Studies From An ASCSP-Certified Team
Source Advisors is based in Arlington, Texas, and cites more than 40 years in the cost segregation industry. It says its team includes ASCSP-certified professionals, with engineers and tax professionals separating building components under IRS depreciation schedules. A typical study takes about eight weeks.
Its hospitality page covers guest rooms and themed suites, lobbies, restaurants and lounges, building systems such as HVAC and lighting controls, and amenities such as pools, spas and fitness centers. Source Advisors says guestroom items such as glued-on finishes, millwork and data connections typically fall into 5-year property, while parking, landscaping, lighting and pools fall into 15-year land improvements. It states that accelerating 10% to 40% of capitalized costs is typical for hotels.
Its published case study on a 122-unit, $35.2 million hotel reclassified 15% as 15-year property and 23% as 5-year property.
Best for: Owners of full-service and select-service hotels who want a specialist with published hotel results.
2. KBKG — Independent Specialist With Hospitality Case Studies Since 1999
KBKG was established in 1999 and lists offices in Los Angeles, New York, Atlanta, Chicago, Dallas, Detroit and Houston. It says it is not owned by or affiliated with any CPA firm, and its team includes engineers, attorneys and former IRS engineers. Several principals hold the CCSP credential.
Hotels are one of the property types KBKG lists for cost segregation, and its case study library includes hotels, casinos, golf courses and country clubs, restaurants and fitness facilities. That range is useful for resort owners whose property mixes lodging with food and beverage and recreation.
KBKG builds its reports around the IRS “13 Principal Elements of a Quality Cost Segregation Study,” and works with CPA firms as a referral partner. It also advises on related fixed asset topics such as repair and capitalization questions during renovations.
Best for: Owners and CPAs who want an independent, audit-focused firm for hotels and resorts.
Engineered Tax Services (ETS) was founded in 2001 by Julio Gonzalez and is based in West Palm Beach, Florida, with offices in cities including Dallas, Los Angeles, New York and Phoenix. It describes itself as a licensed engineering firm specializing in tax strategies, with engineers, tax attorneys and CPAs on staff.
ETS publishes hotel case studies, including a property in Lake Placid, New York, and an eight-unit historic hotel in Williams, Arizona, where about 21% of basis moved to 5-year property and about 12% to 15-year property. Those smaller examples show the firm works on independent and older properties, not only branded new builds.
ETS also offers 179D energy deductions, which can matter for hotel owners upgrading lighting, HVAC or building envelopes during a renovation, although the 2025 tax law cut 179D back sharply for projects that begin construction after June 30, 2026, so check eligibility with your CPA.
Best for: Owners of independent, historic or smaller hotels anywhere in the US.
4. Kroll — Hospitality Advisory Group For Institutional Owners
Kroll’s Real Estate Advisory Group offers engineering-based cost segregation alongside look-back studies, repair regulations analysis, asset scrubs, IRS-based statistical sampling, REIT-specific studies and IRS audit defense. Hotels, resorts and casinos are on its list of property types suited to a study.
The firm also runs a Hospitality Advisory Services Group that serves owners and operators of hospitality real estate. Kroll says it has worked with major brands as well as independent boutique hotels.
The statistical sampling and asset scrub services are most relevant for owners with large hotel portfolios, where studying every property individually would be slow and expensive. Kroll does not publish fees on its cost segregation page.
Best for: REITs, funds and institutional owners with multi-hotel portfolios.
5. Leyton — Large-Hotel Case Studies With Pay-After-Delivery Billing
Leyton is an international tax consultancy whose US practice reports more than 10,000 cost segregation studies. Its studies are led by engineers, construction analysts and tax professionals, run remotely or in person, and typically take four to eight weeks. Clients pay after the study is delivered, with no upfront retainer.
Leyton publishes a hotel case study on a $90 million, 54,916 square foot new build, where roughly 14% of basis went to 5-year property, 2% to 7-year property and 15% to 15-year property. Its Texas page also cites a $10.8 million Fort Worth hotel with about $2.8 million reclassified.
The payment model reduces risk for owners who are unsure whether a study will be worth it.
Best for: Developers and owners of larger hotels who want engineering depth without an upfront fee.
6. Forvis Mazars — Hospitality Tax Planning Beyond The Study
Forvis Mazars is a national accounting firm with about 7,000 team members. Its Hospitality and Restaurants group serves hotels, resorts and lodging, restaurants, golf courses, country clubs and fitness centers.
The firm offers cost segregation studies for newly built properties, renovations and expansions, and acquisitions. Its hospitality guidance places the study within a wider tax plan, covering repair versus capitalization analysis, Section 179D energy deductions and Section 163(j) business interest limitation planning. That matters for leveraged hotel owners, since interest limits and depreciation interact.
It also offers outsourced accounting and long-range planning, which suits ownership groups that want one firm for compliance and strategy.
Best for: Hotel ownership groups that want hotel cost segregation tied into broader tax planning.
7. Withum — National CPA Firm With A Hospitality Practice
Withum opened in Milltown, New Jersey, in 1974 and now has about 3,200 team members across 30 offices. Its cost segregation service covers new construction, acquisitions, expansions and remodels, plus look-back studies, repair studies and Section 179 studies.
Withum publishes potential reallocation ranges by property type, listing hotels and resorts at 15% to 50%, one of the widest ranges on its chart. It also has a hospitality services practice and has published guidance on hospitality cost segregation.
Withum is a good fit for hotel owners who want their accounting firm to coordinate the study with federal and state tax planning instead of hiring a separate vendor.
Best for: Owners in the Northeast and beyond who want a national CPA firm handling the study.
8. McGuire Sponsel — Specialist Partner To CPA Firms For Hotels And Resorts
McGuire Sponsel is an Indianapolis firm that helps CPA firms with cost segregation, R&D tax credits, IC-DISC and economic incentives. Its fixed asset practice reclassifies assets to optimize depreciation deductions.
Hotels and resorts are one of the industries McGuire Sponsel lists on its site, along with multifamily, assisted living, restaurants and auto dealerships. It also offers property tax and location advisory services, which can be useful when a hotel project is still choosing a site or negotiating incentives.
Because much of its work comes through accountants, McGuire Sponsel suits owners whose CPA wants to bring in a specialist while keeping control of the return.
Best for: Hotel owners whose CPA prefers a specialist partner with an incentives practice.
Capstan Tax Strategies is based in Dresher, Pennsylvania, and provides cost segregation and R&D tax credit studies for commercial real estate and business owners. Its team includes attorneys, engineers and tax experts, and it manages the full study with IRS-compliant deliverables.
Hotels are named among the property types Capstan serves, alongside restaurants, retail, self-storage and multifamily. The firm also works closely with CPA firms, offering specialist consulting for accountants and handling the engineering analysis while the CPA keeps the return. Capstan also runs R&D credit studies, which can matter for hotel groups that develop their own technology or building systems.
Capstan is a practical choice for mid-size hotel owners who want a specialist without engaging a large national accounting firm.
Best for: Owners of mid-size hotels and their CPAs.
10. R.E. Cost Seg — Virtual Inspections For Boutique Hotels And Motels
R.E. Cost Seg is a Houston firm founded in 2022 that lists hotels and motels among the property types it serves. It reports more than 20,000 properties and studies completed and says it has worked in all 50 states.
Its hotel guidance covers FF&E, specialty lighting, removable flooring, guest-room appliances and PTAC units, signage, pools and parking, and renovation build-outs. It cites a 60-room boutique hotel renovation with nearly $2 million reclassified. Fully Engineered Studies start at $2,730 for commercial properties, with inspections usually done by video call.
The firm also flags recapture, passive activity rules and excess business loss limits in its hotel guidance, which is a useful sign of balanced advice.
Best for: Owners of boutique hotels, motels and renovated properties who want a lower-cost study.
How To Choose A Hotel Cost Segregation Firm
Has The Firm Studied Hotels Like Yours?
A 60-room motel, a branded select-service property and a resort with restaurants and a golf course are very different studies. Ask for hospitality case studies at a similar size and service level.
How Will The Firm Handle FF&E And Renovations?
Hotels renovate on regular cycles. Ask how the firm treats FF&E already on your books, how it handles qualified improvement property in renovations, and whether it can identify retired components for partial disposition deductions.
Is The Study Engineering-Based And Audit-Ready?
Ask who performs the site inspection, whether the report follows IRS quality guidelines, and what audit defense is included. For large or full-service hotels, an on-site inspection is usually worth the extra cost.
Can The Firm Coordinate With Your Wider Tax Plan?
Hotel owners often face interest limitation, passive loss and recapture questions. A firm that coordinates with your CPA, or a CPA firm with a hospitality practice, can help you use the deductions you create. See our list of tax strategy firms for real estate investors for more options.
What Will It Cost?
Fees scale with hotel size and complexity. Ask for a free benefit estimate before signing, and compare at least two quotes on scope as well as price.
Frequently Asked Questions
How Much Of A Hotel Can Be Reclassified?
Firms on this list publish ranges from about 10% to 50% of depreciable basis, depending on the hotel. Full-service properties with restaurants, pools and heavy FF&E usually land higher than limited-service properties.
Can I Study A Hotel I Bought Years Ago?
Yes. A look-back study lets you claim missed depreciation in the current year through a change in accounting method on Form 3115, without amending prior returns. Ask your CPA to confirm.
Does 100% Bonus Depreciation Apply To Hotels In 2027?
Under the 2025 law, qualifying property acquired and placed in service after January 19, 2025 is eligible for permanent 100% bonus depreciation. Hotels acquired earlier follow the old phase-down, which is 0% for property placed in service in 2027.
Is Hotel Cost Segregation Worth It If I Plan To Sell Soon?
Possibly, but depreciation recapture on 5 and 7-year property can be taxed as ordinary income at sale. Model the holding period and exit with your CPA before ordering a study.
Conclusion
For most hotel owners, the decision comes down to scale and support. Source Advisors, KBKG and Engineered Tax Services bring specialist depth, Kroll suits institutional portfolios, Forvis Mazars and Withum fit owners who want a national CPA firm, and R.E. Cost Seg offers a lower-cost path for boutique properties. Ask each firm for a benefit estimate and a sample report before you decide, and compare options on our list of top commercial cost segregation firms.
This article is general information, not tax or legal advice.
