Hotels in Pflugerville formed a new Tourism Public Improvement District to fund projects that elevate visitation.
Similar to a hotel occupancy tax, participating hotels in Pflugerville will collect a 2% booking fee to promote city tourism. Event producers can pitch to the TPID board for a partnership.
The board has an estimated $360,000 budget to fund tourism boosting projects. Transportation between hotels and events, partnering with Circuit of the Americas racing staff; and attracting film and production companies are among early project ideas. The district also plans to support established Pflugerville festivals.
Increased overnight hotel stays generate revenue that the city reinvests in community events, public art, destination marketing and other projects that benefit residents and visitors, wrote Candace Mundt-Bates, assistant director of Pflugerville communications.
Pflugerville TPID hotels must have 70 or more rooms and initial participants include Home2 Suites by Hilton, Courtyard by Marriott, Holiday Inn Express, Best Western, La Quinta Inn & Suites by Wyndham and Hawthorn Extended Stay by Wyndham.
TPIDs operate across Texas, beginning in Dallas in 2012. Austin approved its district in 2024, with the 2% fee taking effect Jan. 1, 2025. City taxes are applied after this fee.
Hotels in the public improvement district estimated budgets from lodging. City of Pflugerville
Producers fund tourism projects by pitching to the board, but the pitch process varies by district. Projects range from conventions and concerts, to homelessness services. Visit Austin mediates the city’s district.
Danial Speluda, general manager of Courtyard by Marriott who started Pflugerville's TPID plan, said the service plan is broad and open to a variety of strategies and projects.
"It's gonna be very slow at first,” Speulda said. “It's gonna take a while. But whoever has a crazy idea, let's try it."
Speulda bid to host COTA staff, a job that needed 400 hotel rooms. An impossible ask for a 150 room building became more approachable as a TPID collective of hotels. If Pflugerville wins the bid, the city generates revenue for the arts, the TPID pays for COTA staff transportation and guests spend money in Pflugerville.
“Everyone wins,” Speulda said.
Pflugerville’s new district is another step toward the community’s future. The Downtown East End project includes plans for a new city hall, plus commercial and residential buildings designed around a community gathering space.
“The TPID complements these investments by creating additional resources dedicated specifically to tourism promotion,” Mundt-Bates wrote. “Funds generated through the TPID would be directed by participating hotels toward marketing initiatives designed to increase overnight stays, attract new visitors, support events and elevate Pflugerville's visibility in highly competitive tourism markets.”