Visit McKinney board approves hotel-occupancy-tax grant rules requiring 25 room-night minimum

The Visit McKinney board on Tuesday, Feb. 25, 2025, approved changes to its festival and event hotel-occupancy-tax (HOT) grant policy that will tie awards to verified overnight stays and set a 25 room-night minimum to qualify.

The board approved the policy update during its meeting at City Hall and Council Chambers, 401 E. Virginia St., McKinney. Aaron Warner, executive director of Visit McKinney, told the board the revisions are intended to align the program with state HOT rules and to better target funding toward events that generate hotel stays.

"Every expenditure must directly enhance and promote tourism in the hotel and convention industry," Warner said, summarizing the state standard the board used in its review. He said the board will now evaluate and pay grants based on verified room nights rather than on marketing-reimbursement receipts.

The changes include a minimum of 25 room nights generated by an event to qualify for funding, a rolling application process (no fixed cycles), an application deadline tied to the event (applications must be submitted within 90 days of…