Occupancy on the books at Washington, D.C.-area hotels is strong in the immediate days leading up to Inauguration Day on Jan. 20, but the demand pickup is coming later than usual, only a couple of days prior to the event.
Although hotel demand in Washington, D.C., is expected to increase significantly compared to the last presidential inauguration in 2021, during the COVID-19 pandemic, the length of stays of attendees is less than it has been in past unimpeded inaugurations.
President-elect Donald Trump will be inaugurated as the 47th president of the United States on Monday. This will be the first presidential inauguration since January 2021, when President Joe Biden was sworn in less than a year after the global outbreak of the pandemic.
Preliminary CoStar data shows significant year-over-year occupancy upticks in both the Washington, D.C., central business district and its greater market between Jan. 18-20, with room for more increases as the event draws nearer.
As of Jan. 13, hotel occupancy on the books is at 74.9% in the D.C. central business district on Jan. 20 — Inauguration Day — up from 41% in 2023. It's currently at 58.4% in the greater D.C. market, up from 33.5% last year.
This is Trump's second inauguration as president, previously taking the presidential oath in January 2017. Occupancy in the Washington, D.C., central business district stood at 95.3% on the day of Trump's first inauguration.
At President Joe Biden's inauguration in January 2021, hotel occupancy levels were significantly lower in the D.C. area. On Biden's Inauguration Day, hotel occupancy was at 68.6% in the market's central business district.
When Barack Obama was inaugurated as U.S. president for the first time in 2009, hotel occupancy was 96.5% on the day of the event. In Obama's second inauguration in 2013, occupancy was more subdued at 74.8%.
Chris Klauda, senior director of product analytics and insights at STR, said second-term inaugurations typically see less hotel demand because there's a drop-off in novelty. However, an eight-year gap in Trump's inaugurations gives it more of the feel of a first go-around.
"With Obama, the second one wasn't as strong as the first," she said. "The difference with the Trump one is that it's the second non-consecutive one."
Another factor to consider is that this inauguration will take place on a Monday, albeit a holiday in Martin Luther King Jr. Day. Trump's previous inauguration in 2017 was on a Friday. Obama's inaugurations were on Monday in 2013 and Wednesday in 2009, respectively.
"If it's on a weekend, that's a benefit for sure," Klauda said.
On-property demand and operations
David Hill, area general manager at Crestline Hotels & Resorts in Washington, D.C. — including the Phoenix Park Hotel, which is a block from the U.S. Capitol — said each inauguration is different for hotel demand.
That demand is expected to be strong on the immediate days leading up to the Inauguration Day as well as the day of the event as well.
Andrew Daly, assistant general manager at the Holiday Inn Express Washington DC Downtown, said his property has been preparing for it for quite some time and it's being reflected in expectations of near-full occupancy and increased rates.
"When the demand is high, we're easily able to drive our rates," he said. "Depending on the event, 20% to 30% isn't necessarily out of the question."
Although hotel occupancy on the books is strong in D.C., it was common in the past to sell three- or four-night stays at a premium rate around Inauguration Day. That isn't the case anymore, Hill said.
"The days of having three perfect nights or even four — I think those are long gone. That's never going to happen again," he said. "It just seems like the dynamics have changed over the years."
Jeremy El-Ella, general manager at the Holiday Inn Express Washington D.C. Downtown, said he's seen the same trend at his property. Instead of the demand pickup starting three days out on Friday, it's more so two days out on the Saturday prior to the event.
The ability to generate demand has been more difficult than previously expected across the city, Hill said.
"The perceived demand didn't seem to generate how we thought it would. The things that normally come together didn't come together," he said. "The business pace that we thought would happen frankly didn't, and not just for us, for everyone."
In the past, the National Committee from the winning party would typically reach out to set up rooms for delegates across the country in D.C. Hill said there really isn't a central point to contact to set that up anymore, and it's more of a free for all.
This year, Hill said there are increased security levels that have restricted access. One positive from this, though, has been the increase in demand from Capitol police and the National Guard.