Large-scale government activity, tourism, and local businesses provide consistent lodging demand for this market. Given the convenience of three major airports that service the metro area, Washington, D.C., is also a center for major groups/events. The market can be partly insulated from economic downturns given the stability provided by the federal government infrastructure. Presidential inaugurations 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. While 2025 started off strong given the increase in ADR driven by the presidential inauguration, performance then declined because of the cuts initiated by the Department of Government Efficiency (DOGE); reduced international travel, influenced by the to ongoing trade disputes; and a reduction in tourism because of the presence of the National Guard. However, the District's role as the nation’s capital, its strong corporate and institutional sectors, and the array of tourist attractions continue to support a healthy lodging market. Construction of the NFL's Washington Commanders’ new, $3.7-billion stadium is expected to begin in 2026. While there is some short-term uncertainty, investors continue to perceive 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.

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 Chief Operating Officer U.S. Consulting & Valuation Division [email protected] +1 302 740-2772 (m)
	Kannan Sankaran Managing Director Consulting [email protected] +1 703 508-1749 (m)