Arlington BOE affirms county assessment for Richmond Highway hotel, 4‑1

Mr. Johnson, a managing director at Jones Langel, told the Arlington County Board of Equalization on June 10 that the Hilton Garden Inn at 2000/2020 Richmond Highway was operating above its competitive set and that adjustments to expense ratios and a loaded capitalization rate support a lower valuation. "The determination of fair market value by capitalization of economic rent is the preferred method," he said, arguing a loaded cap rate of 9.69% and an indicated value near $63 million (or roughly $65–66 million if a brand premium deduction is removed).

County appraiser Miss Shuttlesworth said the department inspected the hotel on March 30, 2026, and relied on published cap‑rate ranges (PricewaterhouseCoopers, RERC) and local metrics such as occupancy, ADR and revenue per available room. She explained that the county uses a 9.043% cap rate in this case and that the appellant had included reserves for replacement in operating expenses, which the county reports separately. "After the pandemic, tourist activity rose sharply," she said, noting 2023–24 were standout years and that one below‑peak year (2025) is not sufficient to show sustained deterioration.

Board members questioned the diverging non‑operating adjustments, NOI timing and whether the county's surveys and deductions were applied consistently. Members noted the property's 2025 revPAR index and the appellant's submitted market reports but also observed the county's broader data and legal cases cited in the BOE packet.

Chair Mary moved to confirm the county's assessment at $70,870,500; Mr. Mendes seconded. The motion carried 4‑1, with Mr. Pace recording the sole dissent. The BOE therefore left the 2026 assessment unchanged.

The board recorded the formal outcome and moved on to the next appeal.