United States -  Washington DC

Large-scale government activity, tourism, and local businesses provide consistent lodging demand for the Washington, D.C. market. Given the convenience of three major airports that service the metro area, D.C. is also a center for major groups to meet. The market can be partly insulated from economic downturns, due to the stability provided by the federal government infrastructure. Presidential inaugurations also benefit the market, whereas government shutdowns have a limiting influence. Washington tends to perform with occupancy levels bracketing the 70.0% mark, except for periods of economic downturn. In 2023, occupancy reached the high 60s, ADR rose to nearly $180, and RevPAR reached an all-time high. Factors contributing to the strong 2023 performance levels included higher-rated demand from the international corporate, government, and leisure segments, despite the slower rebound of office space vacancies. The outlook for 2024 is favorable; Washington, D.C.'s role as the nation’s capital, its strong corporate and institutional sectors, and the array of tourist attractions have historically supported a strong lodging market and should continue to do so going forward. Investors continue to perceive Washington, D.C. hotels as an attractive long-term investment.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Chelsey Leffet
Managing Director, Northeast Leader
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 302 740-2772 (m)