Marcus & Millichap

D.C./Central Atlantic Hospitality Forecast

First Half 2019

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Occupancy and RevPAR Soar in West Virginia, Attracting More Buyers

Room demand climbs throughout the Virginias, boosting occupancy. Steady room use will underpin a sixth consecutive year of occupancy improvement in the Washington, D.C./Central Atlantic region. Occupancy growth will likely be led by West Virginia this year, where rates have increased considerably since 2017 after the passage of the Tourism Act. The legislation increased research as to how to better market the state to visitors. In the two-year period since the passage of the Tourism Act, occupancy has climbed approximately 950 basis points while RevPAR has surged 19 percent. This momentum will continue in 2019 as the state better targets its marketing campaigns. Outside of West Virginia, the state of Virginia also continues to make steady occupancy gains, registering improvements during the past five years as travelers visit the area for its numerous recreational activities. On the other hand, supply pressures in Maryland and Washington, D.C., are weighing on occupancy and RevPAR rates.

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