Half Moon Bay’s City Council has approved paperwork connected to the pending sale of the property that houses the Ritz-Carlton Half Moon Bay, following the hotel’s payment of $2.16 million in back taxes and interest. The property is being sold by Strategic Hotels & Resorts to Regency Half Moon Bay LLC. The council approved a document related to the transfer on Tuesday, Oct. 6. The sale price and expected closing date were not immediately available. The ownership change follows a dispute over hotel taxes covering September 2021 through August 2024. A city audit found the resort had not collected and paid taxes on some revenue, including resort fees and charges for canceled events or room blocks. The hotel argued that certain fees were not taxable payments for hotel stays. Marriott International, which owns the Ritz-Carlton brand, said cancellation fees were damages for broken contracts. City officials disagreed, finding the fees connected to customers’ original rights to occupy rooms and therefore subject to the city’s hotel tax ordinance. The council rejected most of the hotel’s appeal on Sept. 22. A city tax consultant initially identified about $1.6 million in unpaid taxes. Interest added roughly $363,000, while the council later removed about $191,000 in additional interest tied to a communication breakdown during the dispute. The hotel paid the city last week, according to local reporting. In its appeal, Marriott warned the unexpected expense could prompt staff reductions, temporary layoffs, benefit cuts and reduced services. The company said the hotel would try to recover the costs, potentially affecting guest experience and business. A representative of Unite Here Local 2, the union representing hotel workers, said the union had not been notified of possible staffing impacts. The resort, which opened in 2001, includes guest rooms, restaurants, a spa and two golf courses overlooking the Pacific. Strategic Hotels & Resorts bought it in 2004 for about $124.4 million, according to public records. The tax payment comes as Half Moon Bay works to address a structural budget deficit. The city closed a roughly $1.5 million gap in its 2026-27 budget in June.