Washington, D.C. Hospitality Market Report
Easing Travel Restrictions and a Robust Convention Calendar
Generate Optimism for District Hotels
The pace of recovery accelerates. The reduction in business and foreign travel since the onset of the health crisis has hindered fundamentals in D.C.’s hospitality sector. However, room demand is on the rise, with the metro recording notable increases in occupancy and average daily rates starting in March. Events like the Cherry Blossom and Broccoli City festivals bolstered leisure trips to the District, which helped propel this strong momentum. In May, occupancy surpassed 70 percent for the first time since 2019, while ADR approached an all-time high, eclipsing the $180 threshold. Limited service hotels performed better as of late, due to their ability to offer lower room rates at a time when inflation is tightening consumers’ budgets. Annual occupancy and revenue metrics in this service level are projected to surpass pre-pandemic highs by year-end.