Washington DC Hotel Investments

Washington DC Hotel Investments

Washington DC Hotel Investments

Washington DC – Hotel Equity Fund – Hotel Investment Partners

Washington DC – Hotel Market Report 2020

Washington, D.C., is a famous city. As the capital of the US, this bustling metropolis is a hub of political power. Washington is the nation’s center of government action and policy.

This area is also home to a multitude of diverse national and international organizations, as well as 20 colleges and universities, several healthcare institutions, and educational agencies.

Corporate, government, and educational entities, as well as development industries, financial services, and scientific research, will continue to support this dynamic and resilient economy. The Washington marketplace can sustain itself even during the nation’s downturns; it has a history of growing and expanding on a consistent basis.

The convention scene is also a key driver of group demand in this hospitality sector. The Walter E. Washington Convention Center (WEWCC) provides 2.3 million square feet including 703,000 square feet of exhibit space and 77 individual/customizable meeting rooms.

This facility can handle everything from small events and breakout meetings to conventions with 42,000 attendees. Different categories of events – corporate, entertainment, trade/business, etc. – continue to add millions of dollars annually to the local economy.

With its impressive museums and monuments, Washington has also earned a global reputation as a rich cultural center.

Occupancy rates and average daily rate (ADR) levels have increased over the past several years in the Washington hotel market. ADR gains among midscale to upper-scale hotels are generally tied to the annual federal per-diem rate.

Obviously, the federal government is a huge factor in Washington’s high room demand. There is a significant volume in government-related travel activity.

Yet there is also a steady interest from leisure tourists. All travelers to Washington (government, corporate, meeting and group, and leisure guests) help to push its hotel occupancies to high levels.

During 2017, Washington saw 20.8 million domestic visitors – an increase of 800,000 over the previous year. Visitation rates are expected to keep rising over the next several years.

By 2021, Washington is expected to welcome 26.1 million guests. The hospitality industry is one of Washington’s strongest employers.

Washington is extremely accessible to travelers of all types. Therefore, leisure and business guests love to take advantage of the ample opportunities – and easy ways – to visit such a prestigious city.

Washinton’s hospitality market benefits from its three airports and more than 2,200 flights in and out of the city every day.

Since 2012, the number of take-offs and landings have increased at the Ronald Reagan Washington National Airport (DCA) – the nearest commercial airport to the city. This expanded service brought in over 4.2 million extra visitors per year.

During the same period, Baltimore-Washington International Thurgood Marshall Airport (BWI) reported 1.4 million more passengers.

Recently, the Washington Dulles International Airport (IAD) went through major renovations including the addition of a fourth runway, new air-traffic-control tower, gate expansion, and two new parking garages, as well as the introduction of the AeroTrain – an automated vehicle to transport travelers to their gates.

All these positive changes will continue to support the growth of IAD. As well, the current Metrorail services the Washington Dulles International Airport.

BWI saw a $60 million expansion in 2017. A $374 million renovation began at DRA in June 2018; it is part of a billion-dollar terminal redevelopment to be ready in 2021.

The Metrorail system is also a huge contributor to the city’s accessibility. It also provides transportation to other local areas with significance for business and tourism.

Metrorail has an annual ridership of 271 million people; it is the second-busiest rapid transfer system in the US.

The Washington Union Station is one of the country’s busiest train stations; it serves as Amtrak’s headquarters. This station is a primary rail transit destination for long-distance Amtrak travelers.

More than 3.8 million passengers pass through Union Station every year; that number doesn’t even include local daily commuters.

During 2017 and 2018 respectively, nearly 2,200 hotels came into the greater D.C. market; this trend is expected to continue into the future. Along with new developments, there will be rebranding and conversion projects.

Luxury hotels will make up a considerable percentage of the new supply and conversion plans; upscale hotels tend to operate at higher daily average rate levels.

Last year, there was noteworthy transaction activity in the Washington hospitality sector. As well, these transactions were commanding high per-guest room pricing. It is evident that investors have confidence in this market.

Of course, the presidential election will obviously drive hotel occupancy levels in 2020. There is, however, a positive outlook for the hotel industry in the Washington, D.C., metropolitan area that reaches far beyond this current year.

 

 

HOTEL EQUITY FUND INVESTMENT PARTNERS

 

Acquisitions and Investments

Hotel Equity Fund is one of the top hotel investment in Europe, and now expanding to New York City, West Hollywood CA, South Beach Miami Florida, Chicago, San Francisco, Washington DC, London, Paris, Berlin, Toronto, Jerusalem and Tel Aviv Israel, with results that have consistently bested industry averages. Much of this success is a direct result of our focus on investor returns, individual assets, and aligning management with the individual needs of owners. Our combination of strong capitalization through Hotel Equity Fund, and a strong track record of experience offer a level of credibility that is nearly unmatched in the industry.

 

 

Investment Criteria

We are aggressively seeking new properties in New York CityWest Hollywood CASouth Beach Miami Florida, ChicagoLos Angeles, San FranciscoWashington DCLondon UKParis,  BerlinToronto ONMontréal Québec, Israel including Tel Aviv and Jerusalem, and feel that our centralized operation of business in New York offers the very type of responsiveness, professionalism and capital resources the industry has been seeking. Please click here to review the investment criteria.

 

Development Opportunities

Our Hotel Equity Fund owned hotel and resort development subsidiary, Hotel Equity Fund Development, has extensive experience in resort, hotel, and golf course development, with recent hotel development and hotel redevelopment projects totaling over $2 billion. Our projects are well known for meeting market demand and for attention to both design and operating detail. Our culture of “listening to the customer” is at the heart of our development process and has allowed properties to excel in both operating performance and value retention.

 

Boutique Hotel Investments

Boutique hotels, also known as lifestyle hotels, vary in shape and size; however, all boutique hotels rely heavily on creative energy and highly personalized service to compete in the overall hotel industry.

Hotel Equity Fund is a respected financial hotel investment firm, utilizing hotel equity funds to assist its hotel real estate developers and partners in gaining favorable returns on their investments. Hotel Equity Fund works with a range of hospitality firms to increase the efficiency and effectiveness of individual hotel properties, ranging from boutique hotels with excellent F&B, premium brands to mid to up-scale well-located properties.

Since 1980, the Hotel Equity Fund and Hotel Equity Fund Partners Investment Program have invested over $2 billion into quality hotel real estate properties with aggregate transaction capitalization of nearly $3 billion. By partnering experienced advisors with each investment partner, Hotel Equity Fund ensures that each property is equipped with a creative vision and practical management plan to achieve long-term financial sustainability and success.

 

Hotel Developments & Acquisitions

Hotel Equity Fund routinely assesses joint venture development opportunities which provide long-term alignment of interests for both Hotel Equity Fund and prospective partners in New York CityWest Hollywood CASouth Beach Miami Florida, Chicago, Los AngelesSan FranciscoWashington DC, Toronto Canada, LondonParis, Jerusalem and Tel Aviv Israel.

Experienced, multi-brand, investment-grade hotel developers, Hotel Equity Fund will take a project from dirt or acquiring an Landmark Building for hotel conversion to a stabilized hotel through hotel disposition. Offering a variety of hotel investment services, our specialized team can meet your unique hotel project requirements including, but not limited to, the following:

 

  • Assist in hotel site selection and property evaluation.

 

  • Evaluate benefits of and selection from available boutique brand or a national brands.

 

 

 

  • Make recommendations regarding legal entity and JV agreement options.Prepare preliminary hotel construction cost estimates.

 

  • Offer professional market study or appraisal recommendations.

 

  • Assist in selection and coordination of attorney, architect, civil engineer, project manager, general contractor,

 

  • FF&E procurement and interior design.

 

  • Provide construction, financing, permanent debt, refinancing and disposition roles.

 

  • Execute long-term management contract services.

Hotel Equity Fund’s proven investment methods mitigate risk and encourage success, combining our investment and management fluency with the strength and potential of partner assets. If you would like to read more about the positive impact we have made with our hotel equity fund, please explore the entirety of this website.