Large-scale government activity (including national and international contractors), tourism, and local businesses all continue to provide consistent lodging demand for the Washington, D.C. market. While the downturn of 2008 and 2009 severely affected the national lodging market, it had less of an impact on the D.C. area given its status as the nation's capital, its reliance on meeting and group demand, and the presence of much of the federal government infrastructure. Thus, RevPAR fell by only 8.6% in 2009, compared to the average 19.0% decline experienced by the top 25 major lodging markets in the United States. New supply, as well as government sequestration and temporary government shutdowns, caused declines in occupancy throughout the historical period. Conversely, presidential inaugurations have positively affected the performance of area hotels, including in 2017, although this year also experienced a demand influx from the Women’s March event in January, resulting in a correction the following year. 

The Washington, D.C. market was severely affected by the COVID-19 pandemic and the related decline in travel. The magnitude of the decline in D.C. was more significant than that experienced by the U.S. lodging industry as a whole; data from 2020 and 2021 indicate that D.C.'s rebound was slower than that of the United States, largely due to this area's significant reliance on the meeting/group segment. The suburban markets have fared better than the District, with more transient travel occurring in those areas, but group room nights remained low throughout the region. In 2022, ADRs began rebounding mid-year, which resulted in the market's ADR surpassing the 2019 level by year's end. Occupancy, however, remained impeded and fell short of a full recovery by almost 9.0%. Despite the recent slow recovery of occupancy, ADR growth has been somewhat supported by higher-rated demand from the international corporate, government, and leisure segments, including the luxury group segment. It will likely take another year or two for RevPAR to rebound fully, but investors continue to perceive Washington, D.C. hotels as an attractive long-term investment. Washington, D.C.'s role as the nation’s capital, its strong corporate and institutional sectors, and the array of tourist destinations have historically supported a strong lodging market and should continue to do so going forward.

* 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.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

Washington DC RevPAR Change

Washington DC RevPAR

For more information, please contact:

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