Washington, D.C. Hospitality Market Report

Federal policy uncertainty continues to weigh on performance across the metro. While properties farther from the urban core are positioned to outperform on a relative basis — particularly in outer-ring Maryland submarkets such as Bethesda-College Park and Frederick-Rockville — the broader hospitality sector is likely to remain under pressure for a second consecutive year. ADR is prepared to contract across all submarkets and chain scales except luxury hotels. This reflects a sustained pullback in government-related travel alongside softer business and leisure demand. Planned America250 events may provide a temporary lift in visitation, especially in July, similar to the marginal occupancy gains recorded during the June 2025 military parade. Still, these episodic boosts are unlikely to fully offset the drag from ongoing government shutdown concerns and the continued deployment of the National Guard in the urban core through at least the end of 2026, which are likely to weigh on traveler perception and bookings.