Houston is trying to figure out how to collect taxes on third-party hotel bookings. City officials tell the Houston Chronicle that the city is losing up to $2 million annually in taxes linked to reservations made on sites like Travelocity and Expedia. The issue is whether online travel companies that buy what used to be called distressed inventory, then sell those rooms to consumers at a mark-up, should pay hotel-occupancy taxes (HOT) on the price difference.

Houston hotels remit 17 percent in HOT based on the price at which they sell rooms. As in other cities, these taxes go to retire debt or to keep the general fund operating. No doubt the city needs the money, so there’s a reason to pressure the third-party sites. Those sites, meanwhile, say the mark-up represents a service fee and so is not subject to HOT.

The issue is whether the city or the hotel companies, which already have a track record in right-sizing their relationship with online travel agencies, should wield the pressure. I favor the latter. The third-party sites are surely benefiting from this, but so are the hotels—and the people who book the bargain guestrooms. Lest we forget: the city benefits, too. If costly litigation against the third-party sites leads to a decrease in hotel business, everybody loses.

It seems not a month goes by when Starwood announces an industry-forward initiative—be it the W brand’s bold nonsmoking hotel proclamation, introduced this past winter, a new lobby scents program being rolled out to 600 properties or last year’s groovy aloft select service boutique concept.

This month was no exception—I logged on my computer yesterday to find yet another new concept from Starwood being heralded—the mysteriously named “Project ESW.”

The new upper upscale extended stay brand, inspired by Westin Hotels, will feature a “sophisticated, residential product designed to be a refreshing haven in a space rendered rote with look-alike brands and generic features,” claims the company. Instead of working with traditional hotel designers, Westin has partnered with Costas Kondylis, a Manhattan-based residential architect who has completed more than 45 major towers in New York and interior design firm AvroKO, considered innovators in creating smart space living. Starwood will debut the yet-to-be-named brand to hotel developers next week at the New York University International Hospitality Investment Conference.

According to Starwood’s CEO Steven Heyer, Starwood initially considered acquiring an existing extended stay brand, but ultimately decided to start from scratch. “The product in this segment is frankly pretty boring,” says Heyer.

While it’s too soon to say which of some of these initiatives will be hits or misses, I continue to be amazed by the company’s creativity, aggressiveness and timeliness. Cautious it’s not—and I can only imagine how fun it would be to sit in on a company brainstorming session.