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Board leaves two hotel assessments unchanged after review of sales and expense assumptions
Summary
Appeals for two hotels—parcel 104G2 (43 Covenant Drive) and 078 E 8 (1890 Evelyn Byrd Avenue)—were heard; after discussing occupancy, operating-expense ratios and available hotel sales comps, the board voted to leave both assessments unchanged.
The Board of Equalization heard appeals from owners or representatives for two hotel properties: tax parcel 104G2 (43 Covenant Drive) and tax parcel 078 E 8 (1890 Evelyn Byrd Avenue). Assessor staff and the board discussed recent market sales, occupancy assumptions and operating-expense ratios used in the income approach for hotels.
Staff said the office used a consistent operating-expense assumption (about 65%) and a typical occupancy assumption (roughly 65–70% for the city’s stock). Board discussion reviewed a local 2024 sale of a Hampton Inn (85 University) that was publicly reported at roughly $8.7 million and noted an advertised cap rate near 8.2%; staff said the city’s adopted caps for hotels in the assessment study were in the 9–10.5% range depending on property type and observed market data.
After staff and appellant discussion, the board took two motions: - Parcel 104G2 (43 Covenant Drive): Motion to leave the assessed value unchanged. Motion seconded; voice vote—aye; chair voted aye. Outcome: assessment unchanged. - Parcel 078 E 8 (1890 Evelyn Byrd Avenue): Motion to leave the assessed value unchanged (board noted the parcel had a prior BOE decrease that was retained). Motion seconded; voice vote—aye; chair voted aye. Outcome: assessment unchanged.
Board members said the office aims for consistency across hotel properties and that in these cases the assessor’s expense and occupancy assumptions produced values in line with the available sales comparables and the city’s market study.
