DC is the best market for the business right now, president and chief executive Christopher J. Nassetta, says in a prepared statement. "Relocating to the DC area will significantly reduce our operating expenses and will position Hilton in a more central location from which to operate a global business, ease coordination across our organization, and better enable us to execute on strategic opportunities."

If Hilton is indeed focusing on global growth--particularly in Europe--a move to the East Coast makes sense, David Fuller, managing director of HVS Washington, DC, a locally-based hotel consulting and valuation firm, tells GlobeSt.com. "Of course Asia is best served from the West Coast, but much depends from where Hilton thinks the strongest global growth will be coming."

A Hilton headquarters here will also boost DC's hospitality bona fides, Fuller also says. "We have had Marriott here for generations as well as Choice Hotels International", which owns the Comfort Inns and Econo Lodges flags.

Other locally-based hotel groups include RLJ Development, Interstate Hotels & Resorts and DiamondRock Hospitality. "Now all we need is Starwood to move here for DC to become hotel capital," Fuller jokes. The Blackstone Group acquired Hilton Hotels in 2007 for $20 billion.