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From YouTube: Board of Equalization Meeting | July 12, 2023
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A
B
Thank
you.
My
name
is
arminoni.
I
am
a
representative
for
the
owner
of
Ryan
LLC.
Thank
you
everybody
for
your
time
this
morning.
The
subject
property
is
the
Renaissance
Arlington
Capital
View
at
2800
Potomac
Avenue,
the
2023
proposed
assessment
is
76
million,
a
hundred
and
thirty
three
thousand
one
hundred
dollars.
The
indicated
assessment
that
we've
arrived
at
is
54
million,
eight
hundred
and
nineteen
thousand
dollars.
B
If
I
can
flip
everybody
to
page
two
I
have
included
some
notes
and
commentary
there.
Just
discussing
the
hospitality
Market
as
the
data
valuation.
Just
a
few
points
out,
like
the
reference
you
know,
number
one
I
think
everybody
has
seen.
This
is
a
parent.
The
hospitality
industry
was
the
hardest
hit
sector
from
the
covid-19
pandemic.
Some
properties
may
never
reach
pre-pandemic
levels
based
off
of
the
indications
we're
seeing
in
the
market.
B
The
current
Revenue
at
the
subject.
Property
is
still
down
almost
24
from
2019,
which
is
very
considerable,
and
not
necessarily
what
the
larger
market
surveys
indicate
and
it
seems
to
be
a
theme
within
the
DC
region.
B
Second,
which
kind
of
ties
into
this.
The
Washington
DC
Hospitality
Market
has
been
highly
reliant
on
group
travel
to
maintain
occupancy
levels,
especially
relative
to
other
markets
in
the
U.S.
The
shift
of
remote
work
and
virtual
events
as
a
result
of
the
pandemic
may
lead
to
the
fact
that
demand
will
never
reach
the
pre-pandemic
levels
that
we
are
looking
at
right
now.
B
This
is
especially
prevalent
with
hotels
that
have
300,
plus
Keys
I've,
included
a
few
articles
from
co-star
discussing
this
in
the
back
of
the
packet,
which
I
will
reference
if
I
have
time
and
then
finally
I
think
it's
worth
noting
that
with
the
Amazon
hq2
on
pause,
it
is
not
quite
clear
where
or
how
the
hotel
owners
are
going
to
reach
their
pre-pandemic
levels
of
demand,
especially
with
the
decreased
Group,
Travel
and
business
related
travel,
the
there's
a
high
correlation
between
mid-week
transient
occupancy
in
the
DC
region
and
office
utilization.
B
The
correlation
coefficient
co-star
found
in
their
study
was
0.92.
So
almost
a
one
for
one
correlation
and
as
we
know
with
how
you
know,
the
office
utilization
rates
have
dropped
since
covet
and
continued
to
remain
low.
We
believe
that
this
is
a
impact
that
is
going
to
extend
beyond
the
pandemic
due
to
the
shift
to
the
hybrid
work
schedules
in
DC's
biggest
industries,
including
government
Tech,
Finance,
Consulting
Etc.
B
So
with
that
I'll
flip
everybody
to
page
three
of
our
submission,
where
we
have
our
income
approach
off
to
the
left,
we
have
the
Recreation
of
the
2023
Arlington
Department
of
real
estate
assessment
inputs
to
the
right
of
that.
We
have
our
revised
approach
for
2023
and
for
the
columns
very
far
off
to
the
right.
B
We
have
the
trailing
four
years
of
financial
history
of
the
property,
so
starting
with
the
revenue
we
so
in
2022,
the
total
revenue
was
20.8
Million,
which,
as
I
mentioned
earlier,
is
almost
24
below
the
2019
levels
of
27
million.
B
B
You
know
the
way
we're
looking
at
it
is
that,
as
of
you
know
the
calendar
year,
2022
things
began
to
normalize
following
covet
and
you
know
began
to
reach
what
we
would
call,
maybe
a
new
normal
and
there's.
No,
you
know
direct
Catalyst
that
we're
seeing
for
such
a
large
increase
in
revenue
from
2022.
Considering
everything
was
open.
There
was
no
travel
restrictions.
B
You
know
the
vaccine.
Rollout
was
successful.
Consumer
confidence,
you
know,
is
quite
High,
there's
not
much.
You
know
hampering
the
demand
on
the
covet
side.
So
what
we're
seeing
and
what
we
believe
is
you
know
that,
essentially,
these
hotels
are
going
to
have
a
very
hard
time
reaching
these
pre-pandemic
levels
of
Revenue.
So
we
decreased
the
revenues
by
slightly
to
for
Rooms
To
12.8
million.
B
We
assumed
an
average
daily
rate
of
195
with
an
occupancy
of
60,
giving
us
a
REV
power
of
117,
which
we
think
is
a
reasonable
assumption
compared
to
2022,
where
the
ADR
was
191
with
a
57
occupancy,
it's
not
clear
where
the
county
got
their
inputs,
they
do
not
give
a
average
daily
rate
or
occupancy,
so
we
weren't
really
sure
you
know
what
basis
to
go
off
of
I
think
they
do
give
the
Rev
par
of
the
worksheet,
though
so
you
know,
I
guess
if
we
could
assume
what
they
might
have.
B
B
B
B
You
know
we
felt
that
the
assessor,
using
a
total
expense
of
50
15.2
million,
was
quite
quite
you
know,
low
compared
to
the
actual
22
expenses
of
14.8
million.
So
you
know
assuming
a
nearly
three
million
or
2
million
growth
in
Revenue,
while
expenses
only
increased
by
like
400
000,
we
felt
was,
you
know
there
wasn't
much
support
for
that,
so
we
felt
it
was
more
than
reasonable
to
ask
to
use
the
22
actual
expense
ratio
of
71.3
percent.
B
Another
issue
is
that
the
assessor
is
using
a
4.0,
a
four
percent
Reserves
at
the
property.
The
2023
guidelines
indicate
a
4.5
percent
reserves
for
full
service
hotels,
which
is
typically
what
the
county
applies.
They're
applying
four
percent
gear,
because
I
believe
that
you
know
is
what
the
owner
has
reported.
As
of
pre-covered
and
as
a
result,
you
know,
we
think
that
this
hotel
should
be
applied.
The
full
4.5
reserves
universally
as
other
hotels,
receive
in
the
county.
B
B
We
also
feel
it
necessary
to
point
out
that
the
2023
guidelines
are
still
based
on
2019
INE
data
and
have
not
changed
since
tax
year
21
and
they
have
not
been
adjusted
to
account
for
inflation
or
CPI
increases.
So
we
feel
that
this
68
is
actually
still
quite
low.
Historically,
the
county
has
always
used
the
prior
second
year,
like,
for
example,
2020.
They
use
2018.
I
e
data
in
2021.
B
B
As
you
know,
it's
a
big
issue
in
the
market
and
I
do
have
some
articles
included
in
that
as
well,
and
with
that
we
make
this,
you
know
we
do
adjust
the
cap
rate
based
on
Market
survey,
which
is
kind
of
less
of
an
issue,
and
we
think
it's
also
that's
where
we
get
our
value
of
54.8
million,
and
we
think
it's
also
worth
noting
if
we
capitalize
the
actual
22
noi
the
indicated
value
at
the
Assessor's
cap
rate,
the
indicated
value
is
58
million
dollars
still
significantly
less
than
the
current
assessment,
and
with
that
I
think
that
that.
D
First
case
I
believe
the
sun
section,
Arlington
Capital
view
sticking
with
that.
We
kind
of
work
a
little
bit
different
in
order
than
some
of
the
comments
made
on
page
17
of
91,
we'll
see
the
email
received
from
the
agent
for
the
owner
indicating
that
the
ffme
reserves
are
at
four
percent.
Four
percent
is
what
we
used
I
think
we
heard
some
comments
about
inflation,
and
at
rates
should
be
modified
to
reflect
those
inflation
rates.
As.
D
Little
bit
and
the
pre
briefing
for
the
commercial
team
and
foreign.
D
F
D
D
D
F
D
Or
early
next
again,
we've
talked
a
little
bit
about
other
economic
indicators,
We've
included
them
in
the
packets.
D
We
talked
about
Airline
traffic
again,
you
know
almost
471
000
passengers
came
through
the
national
airport
that
did
not
come
through
in
2021.
There's,
no
reason
to
believe
that
these
numbers
would
not
continue
to
freeze
so
that
by
the
way
was
16
increase
year
over
year
and
no
reason
to
believe
these
things
would
not
continue
on.
We
talked
as
well
about
the
popularity
of
Arlington
within
the
state
set
towards
the
records
for
the
state
in
2018
broke
those
records
in
2019.
First,
two
and
a
half
months
of
2020.
It
was
set
to
break
it
again.
D
You
know
when
you
look
at
what
the
county
has
to
offer.
As
far
as
reasons
to
come
here,
it's
not
only
what
the
county
itself
has
our
International
secretary.
D
D
Cars
Etc
makes
this
into
very
viable
Economic,
Opportunity
and
again,
I.
Think
the
hotels
show
that
when
we
talk
specifically
about
the
performance
of
the
property
again,
the
board
knows
we
tend
to
rely
on
the
history.
So,
looking
at
the
summary
sheet
again
we'll
see
that
this
property
itself
Revenue
per
available
room
increase
of
over
150
percent
occupancy
of
over
77
room
revenue
for
over
over
150
percent.
D
What
they
achieved
in
2022.
I
would
say
that's
a
low
projection
now
that
we
know
what
they
actually
occurred
in
2020.
There's
comment
about
the
operating
expense,
we're
three
percent
over
what
they
achieved
and
again
well
within
reason.
After
a
year
of
800
and
almost
840
noi
growth,
we're
honestly
projecting
31
percent,
mostly
importantly,
I
think
when
you
look
at
overall
year
over
year.
Last
year's
assessment
compared
to
this
year
indicates
that
3.2
percent
increase
3.2
percent
increase
year
over
year.
After
a
year
of
the
noises,
the
agent
believes
that
the
property
went
down.
D
26
percent
I
just
don't
understand
how
that
can
be
possible
after
in
the
year
growth
in
which
they
understand.
Again.
When
we
look
at
the
facts
of
the
case,
we
look
at
the
economic
indicators.
We
looked
at
the
County's
recognition
of
the
cap
rate.
We
know
that
inflation
is
actually
trending
down.
We've
applied
the
correct
FF
e
reserve
for
the
agent
and
the
owner.
I
do
believe
that
the
county
should
be
confirmed
that
the
revised
value
of
76
million
105.9
thank.
A
E
You
mentioned
that
the
county
used
the
correct
ffme
according
to
the
guidelines,
no.
D
So
again,
guidelines
are
representative
of
what
submit
to
the
county,
so
it's
just
a
sampling
of
everything
that
we
receive
it's
an
average.
If
you
will
it
says
what
is
what
is
typical?
We
still
tend
to
operate
off
of
what
is
actually
spent
or
incurred
by
the
owner,
so
the
board
may
know
that
or
not,
but
we'll
go
up
or
down.
So
if
we
start
with
the
guideline-
and
we
find
that
in
fact,
they
spent
six
percent
we'll
apply
that
what
we
do
is
confirm
with
the
owner,
what
damage
they
spent
as
opposed
to
computing.
D
D
Excuse
me
probably
two
questions
for
the
Department:
well,
no
really
one
it
has
to
do
with
expenses.
Hotels,
you
don't!
This
is
not
criticism!
You
don't
lose
expenses
like
for
hotels
like
you
do
for
Office
Buildings,
it's
much
more
generic
some
people,
so
I
I
need
help
deciphering.
What
sub-departmental
and
sub
unallocated
mean,
because
and
and
so
maybe
this
helped-
you
target
the
answer.
D
You
project
that
Revenue
gone
up
significantly
from
2022
to
2023,
but
the
operating
expense
is
far
less
and
I.
My
guess
is
that
hotels
are
very
labor
intensive,
a
lot
of
people
providing
a
lot
of
service.
So
there's
a
lot
more
Revenue
coming
in
there's
going
to
be
a
lot
more
people,
but
it's
not
reflected
in
the
expenses.
So
that's
where
I'm
coming
from
yes,
sir
so
yeah
so
generically
speaking.
There's
two
categories:
well,
there's:
three:
there's
lots
of
insurance
and
taxes.
Yeah
so
departmental
is
just
that.
D
What
is
the
EXP?
What
are
the
expenses
that
are
necessary
for
the
income
stream
to
come
in
the
departmental
income?
Stream
So
room
anything
related
to
room,
so
your
hotel
room,
your
room
service,
bedding,
Etc,
you'll,
get
into
salaries,
commissions,
reservation,
expenses,
food
and
beverage,
anything
associated
with
the
cost
of
that
salaries.
Again
bartenders
food
preparation,
Etc
telephone
is
going
to
be
another
one
and
then
what
they
would
lump
it
is
other
anything
other
than
that
is
what's
called
either
undistributed
or
unallocated,
and
that
would
be
all
others.
D
So
the
cost
of
marketing
your
franchise
fees,
your
payroll,
administrative
payroll,
operations
of
repairs
and
maintenance.
Your
utilities
are
going
to
be
in
there,
so
that
number
will
tend
to
be
a
little
bit
more
reflective
of
the
income.
That's
coming
in
your
your
departmental.
It's
not
that
it's
going
to
be
a
fixed
number,
but
you're
going
to
find
that,
especially
when
you
look
at
the
relationship
between
expenses
and
income
on
the
summary
sheet,
you
see
that
they're
inversely
related,
so
the
the
smaller
the
amount
of
money.
D
The
more
percentage
of
the
operating
expenses
appears.
You'll
see
that
again,
then,
last
year
it
was
2020
was
146
percent
operating
expenses.
Well,
that's
not
possible
and
2021
is
105,
so
the
more
they
make.
The
less
that
percentage
actually
goes
down,
especially
as
typical
with
full
service
because
they're
making
more
money,
but
it
doesn't
necessarily
grow
that
it
costs
them
more
money
to
make
that
money.
D
A
G
G
F
G
D
Yeah
portfolio,
it's
two
properties.
This
was
sold
by
jbg,
who
was
trying
to
get
out
of
hospitality
and
into
multi-family
or
spending
yes
family
and
then
again,
as
we
talked
about
this
last
year,
I
mean
this
is
almost
exactly
the
idea
of
principle
of
anticipation,
the
hypothesis,
knowing
that
it
would
come
back
years
to
come,
and
it
has.
F
D
Of
the
event
indicators
we
see
for
economic
growth,
special
related
to
tourism,
gate
numbers
are
up
at
national.
We
have
more
people
coming
into
Arlington.
We
see
that
reflective
and
almost
all
of
our
hotels,
especially
we
didn't
even
focus
on
that.
These
three
hotels
that
we're
here
today
are
located
in
between
Richmond
Highway
on
one
side
and
national
airport,
on
the
other,
within
literally
Stones,
throughout
National
Airport
s
well,
located
we
see
the
growth
year
over
year.
We
do
believe
that
the
modesty,
0.2
percent
increase
is
prudent.
D
B
Thank
you
just
to
comment
on
reserves
this.
It
is
true
that
the
owners
currently
report
four
percent.
However,
you
know
we
feel
that
the
County's
aggregated
Market
data
for
full-service
hotels,
reflecting
a
4.5
percent
Reserve,
is
but
you
know
by
that
own
definition,
more
reflective
of
the
market
and
more
reflective
of
what
the
average
of
what
is
applied
to
hotels
in
the
county.
So
that's
why
we
apply
that
ratio
and
then,
additionally,
regarding
expenses,
again,
the
county
is
using
a
ratio,
that's
below
their
own
guidelines
for
based
on
2019
INE
data.
B
That
has
not
been
adjusted.
So
we
believe
that,
at
the
very
least,
it
would
be
reasonable
to
use
that
68.2
percent
from
the
guidelines
rather
than
the
67
percent,
as
as
we
could
see
in
2022,
it
was
71.3
percent.
Additionally,
I
know
that
things
have
gone
up,
but
the
question
is
from
what
2020
and
2021
disasters
years
for
hotels
and
yes,
there's
some
staggering
percentage
increases,
but
they
are
still
well
below
2019
figures,
and
we
believe
that
that
is
the
more
important
story.
B
A
A
You
know
I
think
that's
a
pretty
big
jump
when
you
look
at
the
noi
for
even
the
initial
assessment
and
revised
I
mean
I
think
what
I
did
I
don't
know
if
I'd
got
any
agreement
here,
I
took
the
columns,
column,
G,
the
accountants
pro
forma
and
which
I
think
is
more.
If
you
look
at
it,
it's
200
000
higher
than
what
it
achieved
in
2022,
which
is
more
in
line
of
it.
Coming
back,
but
I
went
and
took
East.
A
The
county
I
took
out
the
four
and
a
half
percent
and
put
in
four
and
kept
it
out
and
took
out
the
million
94
and
ended
up
at
61
million
6924,
which
to
me
seems
more
in
line
with
where
it's
going,
I
think
it's
going
back
to
76
million,
but
I
don't
think
based
on
2022
value.
E
F
To
it,
Mary
I
ended
up
at
63
958
837.,
but
then
my
thinking
was
that
we
shouldn't
necessarily
drop
below
last
year,
so
my
thinking
was
to
go
with
last
year.
C
F
D
Probably
some
little
surprised
on
the
ffe-
and
this
is
just
nibbling
around
the
edge,
but
we
don't
it's
only
up.
3.2
percent
I
mean
I.
Looked
at
this
I
said:
oh,
that's
terrible!
This
is
horrible.
When
I
look
at
the
bottom
line-
3.2
percent-
that's
completely
reasonable
from
last
year.
Having
said
that,
nonetheless,
the
Department's
very
good
at
applying
guidelines
in
the
in
a
balanced
favor,
particularly
when
it
comes
to
vacancy
hotels,
retail
office.
It's
okay,
it's
you
know,
there's
three
spaces
in
here
and
they've
been
at
least
forever.
D
Nonetheless,
the
guideline
says
five
percent
by
God.
We're
gonna,
give
you
five
percent
I
didn't
see
why
they
didn't
do
it
here,
it's
English
anyway,
so
I
I
came
down
to
a
figure
if
I
re,
by
increasing
the
epiphania
four
and
a
half
percent
I
can't
even
figure
74
million
577.
D
E
E
E
And
the
other
changes
increase
the
expenses
also
to
the
guidelines
to
68.2
by
doing
that,
final
value
after
personal
property
I
got
up
to
73
903,
which
is
very
close
to
us.
F
A
B
Thank
you,
starting
on
page
one,
the
the
subject.
Property
is
the
Residence
Inn
Arlington
Capital
view.
This
is
the
other
hotel
that
was
purchased
on
the
same
transaction.
B
It
is
located
at
2850,
Potomac
Avenue
right
by
the
airport,
and
the
proposed
assessment
is
60
million.
Eight
hundred
and
six
thousand
our
2023
indicated
assessment
is
53
million
194
000.
B
I'm
gonna
skip
over
page
two,
because
I
believe
I.
You
know
touched
on
that
during
first
presentation
and
I
think
that
you
know
all
the
same
Concepts
apply
to
this
hotel.
On
page
three,
we
have
our
income
approach
with
the
same
layout,
the
county
on
the
left,
Ryan
off
to
the
right
and
then
the
trailing
four
years
behind
it.
B
This
one
also
increased
about
three
percent
from
from
last
year,
and
on
this
one
we
had
no
problem
with
the
County's
assumption
for
Revenue.
It
was,
you
know,
pretty
reasonable
increase
from
what
happened
in
2022.
The
big
issue
we
found
with
this
one
and
again
it
seems
to
be
a
theme
with
these
cases-
is
the
expense
ratio.
B
This
property
is
receiving
a
55.5
expense
ratio
which,
to
be
fair,
is
in
line
with
the
pre-coveted.
You
know
expense
ratio.
However,
the
big
issue
we
have
when
looking
at
this
is
the
County's
total
expenses
are
eight
million
dollars.
Thirty
thousand
with
you
know
a
close
to
a
million
higher
in
Revenue.
However,
in
2022
the
total
expenses
were
8.22
million,
so
they're
we're
assuming
a
nearly
1
million
increase
in
Revenue,
while
dropping
expenses
by
almost
a
quarter
million.
B
You
know
we
just
don't
see
what,
where
the
support
for
that
is-
and
you
know
how
that's
logical,
if
there
is
a
way
to
do
it,
I'm
sure
our
client
would
be
happy
to
you
know.
You
know
I'm
sure
they
would
love
for
that
outcome,
but
it
just
doesn't
seem
like
the
realistic
approach
to
look
at
here.
So
what
we
do
is
for
our
approach.
B
We
use
the
County's
revenue
and
we
update
the
expense
ratio
to
60
or
8.6
million,
which
we
believe
is
a
more
reasonable
increase
relative
to
the
revenue
increase
you
know
proposed
by
the
county.
Additionally,
we
adjust
the
cap
rate
slightly
from
8.1
to
8.2
percent.
Again,
not
as
big
of
an
issue,
we
understand
the
market,
surveys
are
kind
of
subjective
and
that
the
county
is
bound
by
Equalization
for
the
cap
rate.
So
that's
not
really.
You
know.
B
We
understand
how
that
is
so
using
that
approach
we
get
an
indicated
value
of
53
million
0.2
after
personal
property
deduction.
We
would
like
to
point
out
that
the
noi
here
is
still
down
25
from
2019,
which
again
even
in
2020.
There
are
many
cases
where
that
was
the
worst
drop
for
many
hotels
across
the
country,
and
you
know,
if
you
look
at
the
market
surveys,
that's
the
decrease
that
was
seen.
You
know
pretty
universally.
B
It's
worth
noting
that
if
we
capitalize
the
2022
noi
at
the
the
counties
category,
the
indicated
value
is
51
million
dollars
after
personal
property,
so
a
lot
lower
than
what
we're
asking
for
here.
So
we
think
that
our
approach
is
being
very
reasonable,
with
the
main
change
again
being
the
expenses
being
increased
to
above
2022,
not
below
2022.,
and
it's
also
worth
noting
that
the
County's
noi
is
representing
a
one
million
dollar
increase
through
2022,
and
we
just
do
not
see
any
be
any
support
for
for
such
a
large
increase.
B
You
know,
especially
considering
the
county.
No
I,
5.7
million
is
pretty
close
to
the
actual
2019
noi.
While
you
know
I
think
eventually
the
hotel
may
get
to
this
point.
I
think
that
what
the
county
is
doing
here
is
you
know
this
is
arguably
a
stabilized
value
that
they're
coming
to,
and
you
know
maybe
they
will
get
to
this
point
in
the
future,
but
many
other
jurisdictions
in
the
area
are
doing
a
similar
approach,
but
they're
also
taking
a
deduction
below
the
line
for
lost
revenues
or
the
present
value.
B
So,
however,
Arlington
County
is
not
doing
this,
so
we
believe
that
there
have
it
has
to
reflect
the
2022
actual
financials,
since
there's
no
adjustment
being
made
to
account
for
the
fact
that
this
is
a
multi-year
recovery.
It's
going
to
take
to
get
to
the
figures
they're
proposing
here.
It's
not
going
to
be
next,
not
this
year.
You
know
at
the
end
of
this
year.
B
So
with
that
in
mind
again,
you
know.
We
believe
that
there
should
be
a
higher
reflection
of
the
actual
2022
financials,
which
we
believe
is
the
the
best
evidence
for
the
performance
at
the
property
and
definitely
supersedes
evidence.
You
know
of
Market
data
and
you
know,
travel
metrics
in
the
county,
because,
while
all
of
those
metrics
may
be
true
at
the
end
of
the
day,
the
Ines
we're
looking
at
here
tell
a
different
story
and
tell
a
story
that
people
are
not
spending
as
much
money
at
on
hotels
as
they
were
before
the
pandemic.
B
I
think
a
lot
of
that
is
driven
by
the
midweek
office.
You
know
transient
office
occupancy,
as
well
as
the
lack
of
Group
Travel
business,
strap
well,
I
should
say,
and
especially
for
hotels
like
this,
with
325
plus
Keys,
which
really
rely
on
that
group
travel
to
reach
their
target
occupancy
levels
and
again
a
lot
of
those
conventions
and
similar
events
are
planned
years
out
in
advance.
B
So
we're
going
to
see
that
it's
not
going
to
be
an
immediate
return
back
to
2019,
it's
going
to
be
very
gradual
and
take
a
while,
for
you
know
the
owners
to
get
there.
So
again,
you
know,
while
we
do
feel
that
eventually
the
hotel
may
get
there,
it's
not
going
to
be
this
year
and
as
a
result,
there
needs
to
be
an
adjustment
to
better
reflect,
what's
actually
happening
so
that
expense
ratio
is.
You
know
how
we
believe
that
that
should
be
accounted
for.
B
And
that's
pretty
much
it
and
again,
you
know
kind
of
pointing
to
some
of
the
Articles,
while
I
have
some
time,
I
believe
Pages,
six,
seven
and
eight
I
have
some
annotated.
You
know
points
on
articles
where
they're,
essentially
discussing
what
I've
already
stated
about
the
group
occupancy
and
the
transient
occupancy
and
the
correlation
to
office.
You
know
occupancy
and
all
that
and
how
it
you
know,
is
disproportionately
affecting
the
DC
Market
compared
to
the
larger
National.
You
know
averages
and
then
additionally,
I've
included
some
articles
further
back
on
page
I.
B
Think
30,
where
the
increased
operating
expenses
as
a
result
of
inflation
become
an
issue
for
the
property
for
the
property
owners
in
the
hotel
industry.
So
there's
some
commentary
in
there
about
that,
and
you
know
some
of
the
bigger
issues
being
utilities,
payroll
costs
Etc.
So
again,
you
know.
We
think
that.
B
We
just
don't
see
where
this
expense
ratio,
you
know,
is
capturing
reality
at
the
property.
But
again
that's
all.
We
asked
the
board
to
you
know
review
that
2022.
I
e
compare
it
to
what
the
county
did
and
hopefully
there's
some
type
of
you
know.
You'll
agree
that
there's
something
Missing
here
and
that's
all.
Thank
you.
D
So
if
I
heard
probably
last
case,
there
was
a
request
for
the
board
members
to
adhere
to
the
guidelines
at
this
case,
not
so
much
last
case.
The
problem
of
adhering
to
the
guidelines
is
the
last
case
we
actually
over
projected
operating
expenses
as
compared
to
what
was
actually
achieved
in
this
case.
When
we
look
at
what
was
achieved,
we
did
not.
We
actually
didn't
pick
it
two
guidelines
that
happened
to
come
out
at
55.5,
which
is
guideline.
We
were
actually
looking
at
what
was
achieved
at
the
property
in
2019
55.9.
D
You
do
again
note
that
the
appellants
in
this
case
do
not
wish
to
use
guidelines
which
are
in
fact
55.5
again.
We
did
note
the
correct
amount
of
ffme.
Again.
We
did
notice
that
this
property
has
actually
been.
Six
percent
of
the
occupancy
achieved
in
2019,
grew
by
over
100.
Almost
100
2022
in
Revenue
could
build
a
room
of
150
percent.
D
Again,
this
property
was
visited
by
a
in
the
board
hearing
by
the
position.
Last
year
you
did
notice
sale
of
74.8
million.
It
was
reduced
down
to
59.2
million
to
be
in
line
with
the
averages
of
the
County
and
again
I
would
point
out
that,
with
our
visual
we're
at
2.7
increase
over
last
year,
there's
been
a
lot
of
mention
that
we're
trying
to
pay
to
2019.
I
went
out
again
where
a
bit
below
2019's
level.
What
we're
trying
to
Peg
is
that
we
saw
the
huge
downturn
in
2020.
D
We
saw
an
immediate
increase
in
2021
during
covet.
You
know
this
was
before
the
idea
that
everyone
could
either
get
vaccines
or
Not
by
2022.
You
had
probing
fatigue.
You
either
figured
out.
You
were
going
to
live
with
it
or
not.
You
started
to
see
travel.
We
started
for
sure
to
see
a
rebound
to
2019
models,
there's
a
reason
why
they
call
it
that
Nike
Swoosh
should
be
either
projected
to
get
a
three
year
recovery
period.
D
We
were
in
that
third
year,
anything
of
all
the
metrics
that
we've
seen
that
are
called
economic
tourism
indicators
for
reason,
because
they
reflect.
What's
going
on
with
the
hospitality
industry,
it'd
be
near
impossible
to
have
these
gay
perceived
numbers
that
are
coming
through
and
protect
that
they
pretend
that
they're
not
going
to
increase
that
they
do
increase.
It
only
makes
sense
that
these
numbers
that
we
see,
but
the
properties
in
the
county
will
continue
to
grow.
We
talked
about
the
idea
that
there's
fewer
hotels
in
the
County
for
people
to
choose.
D
Amongst
so
again,
we've
talked
about
the
proximity
to
the
airport.
It
talks
about
its
proximity
to
DC
through
Richmond
Highway
we've
talked
about
its
proximity
to
Metro.
We
talked
about
its
near
two
thousand
percent
increase
year.
Over
year.
We've
talked
about
that.
It's
an
increased
year
of
the
year
of
2.7.
All
these
things
being
said.
We
do
believe
the
piano.
She
can
confirm
that
60
million
786
200.
D
in
a
cap
rate,
that's
full
10
lower
than
what
was
achieved
in
2019..
So
out
of
2019
levels.
Do
you
believe
will
be
achieved
within
this
next
year.
So
we
do
believe
that
you
can
actually
be
confirmed
that
60
million
7862.
D
A
B
Yes,
thank
you.
So
one
just
to
comment
on
the
sale.
We
believe
that
you
know
the
it
was
a
portfolio
of
sale
and
it
was
highly
speculative
speculative
bought
by
an
Institutional
buyer.
We
don't
believe
it
that
it's,
you
know
necessarily
relevant
in
deriving
the
current
assessment.
That's
equalized,
you
know
amongst
the
county,
hotels
and
then
additionally,
to
comment
on
the
expense
ratio
and
the
commentary
on
the
guidelines.
B
So
for
one
point
the
20
again,
the
guidelines
are
currently
based
on
2019
figures
so
and
they
have
not
been
adjusted
for
inflation
and
just
for
demonstrative
purposes.
I
know
that
it's
not
a
one
for
one
ratio,
but
there
has
been
12
inflation
from
January
1
2019
to
January
1
2023.
So
if
we
apply
that
12
the
expense
ratio
would
actually
be
66.6,
just
as
a
demonstrated
purpose
to
say
that
you
know
what
we're
asking
for
is
60.
B
We
believe
it's
reasonable
and
then,
additionally,
in
the
last
case,
we
didn't
use
the
guidelines,
expense
ratio.
We
used
a
higher
expense
ratio
based
on
the
actuals.
Thank
you
all.
F
F
and
I
I
listened
to
this
information
about
just
because
you
got
more
income,
it
doesn't
mean
your
expenses
also
have
gone
up.
What
I
did
is
I
took
the
I
assumed
the
income,
because
both
parties
agree,
but
I
took
the
actual
operating
expense.
F
It
was
listed
in
Colony
I
ended
up
in
very
close
to
last
year,
a
little
bit
under
58,
679,
726
and
again
I,
don't
know
if
we
should
lower
it.
You
know
I
guess
an
argument
could
be
made
last
year
was
all
right,
so
maybe
just
go
again
with
last
year's
assessed
value.
G
Number
so
I
think
I
can
probably
go
either
way.
The
one
thing
you
know:
we've
got
a
year
now
at
60
percent.
You
should
probably
see
if
that
becomes
the
new
normal
and
from
what
I
understand
talking
to
Hotel.
G
That
do
residence
in
is
that
that
you
can
get
the
people
for
the
long
stays
your
operating
expenses
go
down
relative
to
your
income.
If
you,
if
you're,
trying
to
get
people
to
book
one
night
at
a
time
which
sometimes
you
have
to
do
to
fill
up
your
occupancy,
if
your
expenses
are
closer
to
the
to
the
limited
service,
Hotel
yeah.
F
G
Year,
so
that's
where
the
guidelines
can
get
tricky
because
the
only
way
they
they
got
to
you
know
67
occupancy.
In
my
opinion,
it's
probably
because
they
were
doing
one
night
stays
or
two
night
stays
instead
of
the
you
know.
The
gold
standard
is
get
somebody
in
there
for
a
month
and
then
you're
not
turning
the
room
right
right
yeah.
So
that's
that's
where
all
most
of
their
expenses
so
I
mean
a
long
way
of
saying,
I
think
we're
probably
okay
with
either
last
year's
or
the
revised
number.
That's
pretty
close
to
last
year's.
E
F
G
I
can
see.
Oh
the
appellant
went
in
a
little
bit
extra
like
another
100
or
another
0.1,
or
something
like
that.
Yeah
I'm,
okay,
yeah.
F
G
Should
be
higher
than
the
last
yeah,
it
is
I,
look
at
it
like
if
you
could
probably
get
an
eight
cat,
2023
pro
forma,
Revenue
or
noi,
and
that's
like
62
million
above
assessments.
G
A
A
B
Thank
you
so,
starting
on
page
one,
the
subject
properties,
the
Hilton
Crystal
City,
located
at
23.99,
Jefferson,
Davis,
Jefferson,
Davis
Highway.
The
current
assessment
is
54
million
three
hundred
and
seventy
six
thousand
three
hundred
dollars
and
the
2023
assessment
that
we
have
indicated
is
31
million
three
hundred
ninety
one
thousand
dollars.
B
If
I
could
Point
everyone
to
page
three,
where
you
have
our
income
approach
again
I'm
going
to
skip
over,
you
know
the
previous
commentary
from
other
cases
that
you
know
I
don't
want
to
be
repetitive,
so
this
one
is
different
from
the
others
in
the
fact
that
the
assessment
increased
by
32
from
last
year
or
13.2
million
dollars
which
to
us
was
quite
staggering.
Considering
you
know
the
actual
performance
of
the
property,
the
in
2022,
the
property
achieved.
B
Three
million
dollars
in
noi,
roughly
which
compared
to
2019
of
4.9
million,
is
a
39
decrease
and
if
we
were
to
capitalize
the
2022
noi
at
the
counties,
Capri
the
indicated
value
after
personal
property
is
34
million
three
hundred
thousand
dollars,
so
you
know
far
below
even
last
year's
assessment.
So,
as
a
result,
you
know
we
feel
that
this
increases
very
high
and
not
necessarily
warranted.
B
Looking
at
the
you
know,
inputs
for
the
county
versus
the
actuals,
the
county
is
assuming
19.6
million
in
Revenue,
which
we
believe
is
a
reasonable
assumption.
Given
you
know
the
2022
performance,
however,
again
even
again,
keeping
in
mind
that
2022
is
still
below
22
below
2019,
so
nowhere
near
the
period
pandemic,
levels
of
performance
and
again
overarching
theme-
the
expense
ratio
here
is,
you
know
to
us-
seems
very
out
of
whack
a
lot
more
so
than
the
previous
two
cases.
B
The
county
is
using
expenses
of
about
14
million
dollars
flat
the
which
is
71.4
percent
of
egi.
However,
in
2022
the
actual
expenses
were
15.1
million,
achieving
less
revenue
or,
conversely,
81
of
egi.
B
Also
comparing
this
to
2019,
the
expenses
were
75.4
percent
of
egi,
so
not
much
less
than
2022.
However,
the
county
is
opting
to
use
71.4
percent.
We
do
not
see
where
the
support
for
this
is.
We
feel
that
the
expenses
should
be
reflected
reflecting
the
actual
performances
of
the
property,
as
2022
really
is
our
best
indicator
for
The
New
Normal.
In
the
hospitality
industry,
there's
no
guarantee
that
even
we
are
able
to
achieve
expense
ratios
of
2019's
level.
B
So
for
that
reason
we
apply
80
even
to
the
County's
existing
income,
so
that
comes
to
a
total
expense
of
15.7
million,
roughly
or
roughly
a
600
000
increase
from
2022,
which
is
still
proportionately
less
than
the
increase
in
Revenue,
and
with
that
again
we
do
adjust
the
cap
rate
based
on
the
rerc
first
tier
Washington,
DC
survey
and
8.2
percent.
B
This
hotel
is
getting
7.35
percent
by
the
county
again,
not
as
big
of
an
issue
through
here
is
the
expenses
and
again
pointing
out
that
even
at
the
County's
cap
rate
2022,
the
value
comes
out
to
34.3
million.
We're
not
saying
that
that's
what
the
value
is,
but
we're
saying
if
we
look
at
2022
there's
a
staggering
difference
between
that
and
what
the
county
is
coming
in
at
454.3
million,
which
again
is
a
32
percent
increase
or
13.2
million
dollar
increase
from
last
year.
We
believe
that
this
increase,
you
know,
is
especially
excessive.
B
You
know,
especially,
you
know,
comparing
them
to
the
previous
two
hotels
discussed,
and
we
think
that
you
know
that
this,
especially
you
know,
should
deserve
some
consideration
on
primarily
the
expense
ratio
that's
being
applied.
It's
also
worth
noting
out
that
this
hotel,
if
I
flip
the
page
six,
where
we
have
the
December
2022
star
report.
If
you
look
at
the
the
three
kind
of
boxes
at
the
top
row
under
December
2022,
you
could
see
that
the
subject
property
is
underperforming
compared
to
the
comp
set
pretty
significantly.
B
For
example,
the
year-to-day
average
rev
par
for
the
comp
set
in
the
area
is
114.
However,
this
property
only
achieved
about
96
and
a
half,
so
we
believe
that
that
is
an
indication
that
you
know
this
hotel
is
performing
poorly
relative
to
the
market.
It's
not
as
desirable
as
other
properties
in
the
market
and
as
a
result,
we
can
see
with
what's
happening
in
the
2022
financials.
B
The
story
that's
being
told
here
is
that
this
property
is
suffering
especially
compared
to
its
peers
as
a
result
of
the
pandemic,
and
we
feel
that
the
32
percent
increase
proposed
by
the
county
is,
you
know
far
too
excessive,
and
you
know
we.
We
asked
that
our
you
know
our
advised
expense
ratio
be
considered
by
the
board
and
again
you
know
referencing
these
articles
in
the
back.
You
know
that
there
is
Market
speculation
about
these
increased
expenses
in
relation
to
both
inflation
and
basic.
B
B
Don't
get
me
wrong,
but
it's
just
not
not
what's
happening
in
reality
and
may
not
ever
happen
in
the
future
again,
so
we
asked
that
at
least
at
the
very
least
the
2019
expense
ratio
be
considered,
but
we
strongly
feel
that
2022
is
a
better
indicator
for
The
New
Normal
in
the
hospitality
industry,
and
we
don't
believe
that
the
hotel
will
ever
see
a
you
know:
expense
ratio,
that's
lower
than
70
75
and
a
half
percent
roughly
I
think
that's
pretty
much
all
and
again,
just
just
the
increase
here
is
what
really
is
catching
our
attention?
D
This
man,
so
again,
you
know
we've
kind
of
talked
back
and
forth
It's,
just
essentially
a
disagreement
on
projections
made
based
off
of
historical
data.
We
know
for
a
fact
these
indicators.
D
Burlington's
Economic
Development.
We
know
that
they
are
true
because
we
get
them
from
national
airport.
We
see
that
the
numbers
in
2022
are
up
again
triple
digits
near
670
percent
increase
in
noi
due
to
a
near
100
increase
in
occupancy
year
over
year.
So
the
idea
is
I.
Guess
it's
just
a
matter
of
what's
reasonable.
Again,
we
heard
a
lot
of
talk
in
the
first
case
about
using
guidelines.
If
the
note
guidelines
are
at
68.2
percent,
we're
at
71.4,
so
full
three
percent
over
what
was
achieved.
D
In
this
case,
we
actually
did
test
the
information
we
received
because
we
noted
the
150
growth
and
revenue
year
over
year
we
did
take
our
five
percent.
Growth
was
very
modest.
We
did
note
that
the
appellants
used
that
as
their
projection
as
well.
D
We
did
test
that
information
again,
a
bit
more
aggressive
and
what
was
possible
at
the
history
going
up
to
still
within
a
million
six
hundred
thousand
dollars
less
of
what
was
achieved
in
2019,
we
grossed
up
operating
expenses,
1.5
million
dollars
higher
than
what
was
achieved
in
2022
at
75
percent
total
revenue.
D
We
noted
that
it's
still
within
what
12
or
so
of
what
was
achieved
in
2019
with
our
excuse,
the
10
or
so
what
was
achieved
in
2019
with
our
test.
Therefore,
we
did
recommend
the
revision
we
look
again.
It
is
an
aggressive,
year-of-year
32
change
year
over
year,
but
again,
I
contrast
that,
with
the
accountant's
recommendation
of
the
negative
24
year,
relative
667
revenue
of
150
percent
advocacy
up
94,
but
the
property
should
go
down.
D
24
percent,
we
don't
believe
noi
growth
of
0.8
percent
is
realistic
or,
if
you're,
in
touch
with
the
realities
of
the
marketplace.
So,
even
if
you
do
believe
that
ours
is
too
impressive,
we
believe
there
is
really
not
reflective
of
what's
going
on
based
on
the
metrics
that
have
been
achieved
in
the
marketplace.
It's
not
projection,
it's
packed,
so
you
know
we
would
ask
the
board
to
confirm
the
revision
of
54
million
356.9,
again
12.26
below
the
noi
projection
12.26
below
2019's
level.
So
we
agree
if
you're,
not
at
2019's
level.
D
Do
you
believe
that
you're
very
much
on
the
path
we
exceed
the
increases
and
all
the
correct
metrics?
We
know
that
there's
more
people
coming
to
the
county.
We
believe
that
they're
staying
in
these
hotels
located
again,
this
is
very
much
in
the
same
proximity
of
the
other
two,
so
in
between
Richmond
Highway
and
again
throughout
National
Airport.
This
is
a
full-service
Hotel,
so
they
have
more
ability
to
help
with
those
full
service
customers
that
want
to
pick
a
name
speaking
of
names.
These
are
a
proactive
owner.
D
I
would
note
that
this
name
changed
to
Arlington
Hilton
Arlington,
National
Landing
was
done
with
reason.
They
wanted
to
take
advantage
of
the
national
Landing
icon
the
moniker.
If
you
will
continue
to
do
that,
so
we
believe
that's
indicative
of
the
owners
of
foresight.
If
you
will
to
the
uptick
at.
D
F
Mr
Lawson
yeah
for
the
applicant
I'm
looking
at
this
miscellaneous
Revenue
and
it
went
from
I
guess
973
to
2
mil.
What
is
that?
What
is
that
miscellaneous
Revenue?
Because
that's
a
huge
chunk.
B
That
can
be
many
things,
I
think
a
lot
of
it
is
probably
you
know,
parking
I
think
there
might
be
some
detail
on
the
ime
that
was
submitted.
D
D
Just
kind
of
harping
on
that,
while
again
it's
as
indicative
of
some
refund
from
Group
Travel
I,
think
that
speaks
to
different
travel.
That's
expected
in
this
coming
in
full
service
hotels
that
have
the
ability,
one
through
a
large
period
of
downturn,
with
you're
able
to
put
money
into
their
facilities
expecting
this
sort
of
upturn
in
traveling.
As
we've
seen,
we
do
believe
that
we
believe
the
case
we
tested
the
property
and
we've
seen
all
the
trouble
digit
income
growths.
We
do
believe
again
within
12
of
the
noi
achieved
in
2019.
We
do
believe.
A
B
Yeah,
so
what
I
would
like
to
comment
on
is
that
you
know,
while
again
a
lot
things
have
increased
by
you
know:
three-digit
percentage
figures.
As
the
county
mentioned,
the
point
is
increased
from
what
it
increased
from
a
year
in
2021
that
had
negative
noi.
So
it's
kind
of
you
know.
We
don't
believe
that
those
metrics
are
necessarily
helpful.
B
Additionally,
we
believe
that
I
know
that
last
this
we're
proposing
a
decrease
from
last
year,
which
again
you
know
whether
or
not
it'll
actually
land
at
that
value.
Probably
not,
but
the
point
is
that
we
last
year
we
were
speculating
a
quick
return
back
to
the
pre-pandemic
normal.
However,
now
we
have
another
year
under
the
belt,
where
we're
seeing
noi
40
down
still
from
pre-coveted
levels,
so
we
now
have
another
year
of
data
to
take
into
account
and
therefore
we're
seeing
that
this
is
not
going
to
be
a
quick
rebound
pre-pandemic
levels.
G
G
This
one
is
like
55
percent.
The
counties
got
in
there
as
as
the
noi
increased
from
22
actually
rejected,
so
that
I'm
a
little
hesitant
to
accept
that
number
without
actually
seeing
that
that
four
months
or
something
close
to
it
so
I
mean
I,
looked
at
it
if
it
was
a
15
increase
in
2022
actuals,
even
including.
C
G
2
million
that
they
got
for
cancellations,
I'm
at
like
almost
49
39
16.
619,
just
a
little
bit
below
last
year.
So
I
just
don't
see
the
32
increase.
C
D
Yes,
I
I
feel
with
expenses
they
took
come
G
expenses
and
capped
it
out
and
and
the
achieved
Colony
expenses,
both
of
them
came
out
a
little
bit
called
me
expenses
being
a
smaller
number
was
just
a
little
bit
under
2022.
F
Assessment
taking
the
column
H,
which
I
think
was
an
aggressive
estimate
from
the
Appellate
it's
way
under
I,
don't
see
why
we
would
not
treat
this
hotel
very,
very
much
like
the
last
two.
You
know
all
the
service
levels,
the
three
of
them
are
different.
I
mean
this.
Is
you
know
it's
a
full
service.
D
F
F
E
F
Which
is
used
for
total
record
same
honestly,
I
think
yeah.
A
A
Okay,
we
will
stand
adjourned.
Then
at
1002
we.