DowntownDC BID Hotels Enjoyed Record Year in 2013

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2013 was a record year for the hotel industry in the DowntownDC BID area and the overall city of Washington, D.C.

Room revenue for hotels within the DowntownDC BID in 2013 totaled more than $605 million—a new annual record and a 7 percent increase over revenue totals for 2012, according to new data from Smith Travel Research. BID hotels also saw record occupancy and room rates as well as record revenue per available room night and total hotel room revenues in 2013.  In D.C. overall, hotel room revenue totaled $1.6 billion, yielding $232 million in room sales taxes, or approximately 3.6 percent of the D.C. locally-funded budget.

In the BID, hotel occupancy rates were 79.1 percent in 2013, an increase of 2.8 percent over the previous year. The average daily room rate for BID hotels was $227 in 2013, higher than the $220 average in 2012.  And in 2013, revenue per available room night was $180 versus $168 the previous year. Results in 2013 were boosted by the presidential inauguration in January 2013 and were achieved despite the federal shutdown in October 2013.

Despite 2013’s record performance, 2014 may not yield the same record-setting results. For one, there is no presidential inauguration in 2014, so January’s performance will likely drop by 25 percent when compared to 2013. Additionally, the opening of the Marriott Marquis Convention Center headquarters hotel may result in an overall increase in hotel room revenue, but may also lower operating ratios (occupancy rates, room rates or revenue per available room night) due to the increase in the overall number of DowntownDC BID and D.C. hotel rooms.