Loveland council creates tourism district with 3% hotel room assessment

The Loveland City Council voted 8-0 Tuesday to approve Resolution R-33-2026, creating the Loveland Tourism Improvement District and adopting its initial plan. The new district allows eligible lodging businesses in Loveland to impose a 3% assessment on gross short-term room rental revenue to expand destination marketing, tourism promotion and event development aimed at increasing overnight stays.

Under the resolution, the district will begin July 1 or as soon as possible after that date and run for 10 years. It applies to lodging businesses within city limits, including future hotels annexed into Loveland, but excludes short-term rentals, hotels with fewer than 10 rooms, RV parks and campgrounds. The city’s agenda materials say the district is intended to supplement, not replace, existing Visit Loveland funding and would have no impact on the city’s general fund unless a resident stays at a local hotel.

The initial plan projects about $875,000 a year in assessment revenue, with 90% earmarked for sales, marketing and destination development, and the remainder split between administration and a contingency reserve. Planned uses include digital advertising, group and sports sales, visitor guides, media promotion, co-op marketing with hotels, support for event growth, visitor services and tourism research.

Supporters told council the added funding would help Loveland compete for travelers and events. Sean Hawkins, who said he runs the Loveland Downtown District, urged approval, saying Loveland is "always competing in a state with many wonderful places to visit." He said sports tournaments and festivals can produce major sales for local businesses, citing downtown restaurants and events such as the Sweetheart Festival. Kathy Wright, who said she works at the Loveland Visitor Center, said visitors regularly praise attractions including Benson Sculpture Garden, Devil's Backbone and the city’s trail system, and said tourism efforts since the lodging tax passed have been positive for the community.

One remote speaker, Megan Eliezer of Ward 2, opposed the measure, arguing that travel is already expensive and that the added fee should not take priority over other city needs such as library service and programs for unhoused residents. During council discussion, Council Member Sarah Rothberg asked what visitors would receive in return for the extra fee and whether council would be able to track results.

Staff said council will continue to review the district budget annually and that the district board's meetings will be open to the public. Staff also said Visit Loveland is funded through the lodging tax rather than the general fund, and argued that stronger tourism marketing could increase overnight stays and city sales tax revenue. The resolution also seats the district’s initial board, with six directors drawn from local lodging businesses including Embassy Suites, Hampton Inn, TownePlace Suites, Courtyard by Marriott, Extended Stay America and La Quinta Inn.