Executives say despite setbacks last year and tough
comps in January, signs are showing a brighter 2026 for Washington, D.C.
WASHINGTON, D.C. — Demonstrating its resiliency as a top 25
market, Washington, D.C., is gearing up for a robust second half of 2026,
driven by increased government business and the upcoming Semiquincentennial, a
celebration marking America’s 250th anniversary.
Impacted over the past year by the government shutdown and fewer
inbound international tourists, as well as difficult comparisons to 2025
because of the presidential inauguration, the market's performance lagged a bit
in January and February. However, that trend has reversed course of late with
positive results in March and more increases expected as the year progresses.
In March, RevPAR in D.C. was up some 7.5% year-over-year,
according to STR. Meanwhile, March occupancy increased 4.9% to 73.9 %, while
ADR climbed 2.5% to $206.74.
In addition, the hotel development pipeline in Washington, D.C.,
represents over 13,000 hotel rooms under construction, in final planning, or
proposed as of mid-2025. This includes new construction, conversions and
renovations, according to STR.

What's really the headline here is that government business versus a year ago is on the increase. A year ago, the government shutdown was announced and there was an immediate and enduring dislocation to this market, in particular. It really got hit on the chin, so it’s great to see it come back.
Mark Laport
Mark Laport, president and CEO of Concord Hospitality, which
operates several major-branded properties in the D.C. area, is decidedly
bullish on the market.
“What's really the headline here is that government business
versus a year ago is on the increase. A year ago, the government shutdown was
announced and there was an immediate and enduring dislocation to this market,
in particular. It really got hit on the chin, so it’s great to see it come
back,” he said.
As an example, Laport noted that the company’s Canopy Washington,
D.C. hotel last year in March did about 200 room nights of government business,
and this March the property increased that number by roughly 300%.
“Business transient is coming back as well,” Laport said, further
adding, “it’s still a tough market to drive rate, but volume is growing.”
Didio Pequeno, director of hospitality market analytics at CoStar
Group, noted that while the data in January and February was not particularly
good, a deeper dive into the numbers is needed.
“It looks a lot worse than it actually is, and that’s because this
time last year we had the inauguration. The inauguration boosted numbers,
especially in the first half of the year, so it's going to be difficult to make
year-to-date comparisons. February was actually a decent month in Washington,
D.C. as RevPAR grew 2.8%. That's a really good sign. I don’t know if anyone was
really expecting hotel performance to significantly improve this year,” he
said.

Concord also operates the Motto by Hilton Washington DC City Center hotel.
Events could drive growth
Pequeno further reinforced the potential impact of some of the
planned events.
“What gives the city optimism, and what I've heard over the last
couple of weeks is everything around America250. Washington, D.C., is going to
host a number of events. There's going to be a [Freedom 250] Grand Prix on July
4th and now the UFC is doing an event as well. So they're expecting a pretty
strong summer,” he said.
Laport, who flatly insisted “we’re going to have a good April,”
also added he expects a lift from the celebration this summer and America250.
“We're expecting that to be very positive… In fact, one of our
hotels has already sold out because of that so there are bits of good news
year-over-year for sure,” he said.
Tim Muir, chief development officer at TPG Hotels & Resorts,
which operates both branded hotels and independents within the market under its
Intera Collection, also expects a boost from the events while noting the busy
season is approaching.
“May through October are very strong months for D.C. with
conventions, conferences and tourism. The U.S. celebrating 250 years is going
to be a big thing,” he noted.
In fact, the Convention Center is expected to generate more than
470,000 hotel room nights in 2026. According to Pequeno, “the number of
city-wide events is on pace with what was happening last year, which is a great
sign.”
Meanwhile, executives note that certain submarkets continue to
attract investor interest. Concord Hospitality’s portfolio includes the Hyatt
House Washington DC/The Wharf. Laport touted the area, a mile-long, mixed-use
development on the Southwest Waterfront in Washington, D.C., along the Potomac
River.
“The Wharf area has kind of become the submarket because there are
so many entertainment options and it's safe, new and easy to get to,” he said.
Joe Bojanowski, president of PM Hotel Group, which operates many
hotels in the region, maintained that select submarkets have outperformed the
rest of the market, such as the area near baseball’s Washington Nationals
stadium.
“The ballpark district has done pretty well, and it’s a little
different down there. It’s a little more vibrant and the amenities are a little
bit deeper. There continues to be large development down there in terms of
residential and retail and all the things that draw people in,” he said.
Bojanowski also singled out NoMa, which stands for ‘North of
Massachusetts Avenue,’ a rapidly developed, transit-oriented neighborhood
located just north of Union Station.
“NOMA continues to be a market that's attracting young people,
workers and it’s within walking distance of the Capitol. There are some
government agencies over there as well, and some entertainment and radio
stations, which create demand,” he said.
Finally, the executives collectively looked ahead and offered
longer-term perspectives on the market.
“I love the market; it's one of the few markets in the U.S. that’s
really got everything. It has government, health care, Fortune 500 companies
and universities and hospitals,” said Muir.
Laport, for his part, predicted, “We see it as coming back and
2027 being strong.”
“Washington, D.C. has always been a resilient market; it's always
been a market that performed better than the U.S. as a whole. It was always a
little better positioned, with the federal government serving as a hedge
against some of the cycles we see. The year 2020 is a good example, and even
back to the Great Financial Crisis. I think this market will make its way back
and it will continue to be a good market,” concluded Bojanowski.