Last month we cited a City audit dated March 6 revealing that 10 hotels failed to remit $1,121,530.45 in hotel occupancy tax (HOT), including penalties and interest.
Now we have learned that a second audit, dated April 24 and posted to last month’s agenda of the Financial Oversight & Audit Committee, shows that an additional 20 hotels failed to remit $1,417,289.09.
Thus, a total of 30 El Paso hotels have been delinquent in paying $2,538,819.54 in hotel occupancy tax, denying the City much-needed revenue.
Julia Spencer of KFOX published a report citing the $1.1M of unpaid tax cited in the first audit; and last night, Lauren Bly of KVIA published a report citing the $1.4M of unpaid tax in the second audit. Apparently neither reporter was aware that that there are two audits and so both reported incomplete figures.
10 HOTELS NAMED IN FIRST AUDIT
We filed a public information request and obtained the names of the 10 offending hotels from the March audit. Three of them (Staybridge Suites Airport, Extended Stay America Select Suites, and La Quinta Inn by Wyndham at Remcon Circle) paid the balances due but seven others were referred to Legal for collection as of February 5: Motel 6 El Paso East, Motel 6 El Paso Southeast, Extended_A-Suites UTEP, La Quinta Inn by Wyndham at N. Mesa St., Quality Inn Airport, Quality Suites, and Hilton Garden Inn El Paso.
20 HOTELS NAMES IN SECOND AUDIT
The 20 hotels named in the second audit are the Aloft El Paso, Best Western Airport, Candlewood Suites El Paso, Comfort Suites (1940), Comfort Suites El Paso West, Courtyard Downtown – Convention Center, Courtyard El Paso – Airport, Desert Inn/Days Inn, Extended Stay America – Airport, Extended Stay America – West, Hampton Inn & Suites, Holiday Inn El Paso West – Sunland Park, Holiday Inn Express & Suites, Holiday Inn Express, Home2 Suites by Hilton, Motel 6 West, Palace Inn, Springhill Suites, TownePlace Suites, and Tru by Hilton.
The second audit is fairly recent, so we do not yet have records indicating whether legal action has been taken against any of the offenders or whether any have paid their balances since April. It seems likely, however, that most will face legal action in the near future.
We noticed that among the offenders is the Courtyard Downtown – Convention Center, owned by Jim Scherr, who had benefitted from millions in local tax incentives.
We also noticed that the Holiday Inn El Paso West – Sunland Park owes $701,305.79, almost as much as the other 19 hotels named in the second audit combined.
The $2.5 million cited in the two 2025 audits exceeds the total amount of unpaid tax cited in all the HOT audits conducted between 2016 and 2024 ($1.9 million).
The audits were executed under the leadership of former Chief Internal Auditor Edmundo Calderon, who recently retired. The position will remain vacant until filled since the City refuses to appoint an Interim Chief Internal Auditor.