Robust March, America250 point to DC recovery

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

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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.

Joe Bojanowski

“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.