Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Hotel Assessment topic
No spam. Unsubscribe anytime.
Appellant cites 40% NOI drop as Arlington BOE trims Hilton Arlington assessment to $49.6M
Summary
After hearing competing analyses of income, expenses and cap rates, the Arlington Board of Equalization reduced the Hilton Arlington National Landingassessment to $49,608,800, adopting a test column NOI and raising expense assumptions to align reported operations with market evidence.
The Arlington County Board of Equalization voted to lower the assessment for the Hilton Arlington National Landing to $49,608,800 after considering competing income and cap‑rate analyses from the propertyowneragent and county assessors.
Appellant Arman Yonone, presenting for the owner with Ryan LLC, told the board the countyrevision showed a roughly 10% year‑over‑year increase in assessed value "despite a significant nearly 40% decline in NOI from the previous year," and argued the countyprojection for 2026 lacked direct market evidence. "We projected a $189 ADR and 68% occupancy based on 2025 performance," Yonone said, urging the board to apply a more conservative NOI consistent with recent market reports.
The countyrepresentative responded that the property underwent about $26 million in renovations in 2022–23 and that Arlingtonhotels have produced multiyear strength, making a partial rebound plausible; the county also defended its cap‑rate methodology and surveys.
Board members ran a series of tests adjusting expense ratios and cap‑rate inputs. Several members concluded that increasing the modeled operating expense to about 80% brought the appellantnumbers and county test numbers into closer alignment. Board member Mr. Pace moved to set the assessment using an NOI of $4,102,637 (applying an 8.04% cap rate and a $1,400,000 below‑the‑line negative adjustment), a motion seconded by Mr. Mendez. The board approved the motion and reduced the assessment to $49,608,800.
Why it matters: hotel valuations are sensitive to NOI and cap‑rate choices; the boardaction reflects practical compromise between recent abnormal post‑renovation results and a short‑term decline in 2025. The decision will change the tax basis for the property for the assessment year and may be relevant precedent for other full‑service hotels in Arlington.
The Board concluded the hearing on that case and proceeded to the next appeals on the agenda.
