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Appellant cites regional federal-job losses to challenge hotel assessment; board affirms county revision
Summary
In an appeal over the Residence Inn at 1401 N. Adams St., the appellant argued the county's projected 2026 NOI was too high given 2025 federal job losses and tourism declines; county staff defended modest projections and property classification choices. The board unanimously confirmed the county's revised assessment.
The Board of Equalization unanimously confirmed Arlington County's revised 2026 assessment of $69,347,600 for the Residence Inn at 1401 North Adams Street after a contested hearing about NOI trends and cap-rate classification.
Appellant counsel argued that regional federal job cuts and government-wide travel reductions in 2025 produced a persistent downturn in hotel performance and that the county's projected increase in NOI lacked supporting market data. The appellant cited a regional estimate of 62,000 federal job reductions and lowered tourism metrics to support using the property's 2025 reported NOI as the basis for assessment. "We know the federal government instituted the Doge program which cut entire federal agencies... eliminated 62,000 federal jobs in the region over the course of 2025," the appellant said, linking the cuts to decreased hotel demand.
County representative Mr. Chas responded that the county relied on multiple industry sources (including STR metrics) and used conservative projections that did not bank on large upcoming events. He also explained differences between limited-service and select-service classifications and argued the county's chosen classification and cap rate were defensible given property amenities and revenue composition. "When we look at the property itself, ... they list as a featured amenity free full American hot breakfast," Mr. Chas said to explain the county's classification reasoning.
Board members debated whether the 2025 downturn represented a trend the board should carry forward into 2026 valuations or a single-year dip. After discussion the board unanimously accepted the county's revision and confirmed the assessment.
No further procedural actions were recorded.
