Located at 1440 Rhode Island Ave., the District Hotel is a four-storyboutique hotel built in the 1920s. It currently has 58 rooms withapprovals in place to expand to an eight-story, 92-room hotel.Cherry Blossom plans to expand the hotel in the near future withsignificant improvements.
The District Hotel is one of a small handful of hotel deals that haveoccurred in the DC area in recent months. In the District itself, notmore than three or four properties have traded with in the last yearor so, Donohoe VP Bill Moyer tells GlobeSt.com--two of which the firmbrokered.
Despite the scarcity of transactions, though, the DC areahotel market is performing relatively well compared to other markets.The reason for the lack of sales, Moyer speculates, is because hotelowners prefer to hold onto their assets and have little need to sell."Washington arguable is the best hotel market in the country overalland has been affected less by the downturn than almost any othermarket," he says. "That doesn't mean we are doing great, but it does mean from arelative standpoint we doing well."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
