Nupen Patel, a long-time Houston-based hotel owner and founder of K & K Hotel Group, is speaking out about a growing inequity in the local hospitality industry. He says inconsistent tax treatment, uneven access to development incentives, and regulatory burdens are putting independent hotel operators at a disadvantage compared to large chains and out-of-state developers.
“We’re not asking for special treatment — we’re asking for fair treatment,” says Patel. “Right now, small and regional hotel owners are being left out of the conversation when it comes to tax credits, infrastructure support, and planning decisions.”
Patel, who has developed and managed hotels across the Houston area for over 25 years, points to local development incentives that often favor large-scale commercial projects — especially those backed by national firms with broader lobbying influence.
According to data from the Texas Economic Development Council, nearly 78% of hotel-related development tax incentives in the past five years were awarded to projects with out-of-state or multinational ownership.
“The people who live here, hire locally, and stay invested long-term are the ones most often left out of these deals,” Patel notes. “That hurts the community. It limits job growth and slows down local reinvestment.”
Another growing concern is the property tax structure, which Patel says can penalize long-term owners compared to newer developments that receive temporary abatements or exemptions.
“If you’ve owned a hotel for 15 years, your tax bill can be higher than someone who just opened a new property across the street with incentives,” he says. “It doesn’t make sense. We should be encouraging responsible ownership, not punishing it.”
Patel also raises concerns about zoning flexibility, which he believes disproportionately favors larger hospitality developers who can navigate complex legal processes with greater resources.
“I’m not against growth. I’m just saying the system needs to be more balanced so local operators can compete on even ground.”
He’s not calling for sweeping policy changes, but rather greater transparency, inclusivity in planning decisions, and smarter community-level collaboration.
Patel urges local business owners, real estate stakeholders, and citizens to:
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Attend city council or zoning meetings where commercial development is discussed.
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Engage with local hotel associations to understand how development incentives are distributed.
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Support independent hotels by choosing local when booking stays or hosting events.
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Ask questions when tax incentives or abatements are approved — who benefits, and how does it serve the local economy?
“We all benefit when the playing field is level,” Patel says. “Let’s make sure the system works for the businesses that are truly part of our community—not just the ones with the biggest name or budget.”
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