WASHINGTON, DC-AXA Equitable is providing a $70 million, 20-year, fixed rate permanent loan for the Holiday Inn Capitol hotel, located at 550 C St., SW. The loan was secured by Eastdil Secured, in conjunction with Quadrant Real Estate Advisors and The Donohoe Cos.
The hotel was developed by The Donohoe Cos. in 1980, and is currently undergoing renovations that will deliver this spring. Once the renovations are complete, the nine-story hotel will feature 536 keys and 10,000 square feet of meeting space.
The hotel will deliver into a market recovering from the hit it received during the government shutdown and by sequestration.
In general, hotel sector growth bodes well for 2014.
PKF Hospitality Research is forecasting very strong gains in revenues and profits for the US lodging industry in 2014 and 2015, with national revenue per available room projected to increase by 6.6% in 2014, followed by another 7.5% in 2015. Hotel profits are expected to grow 12.8% and 14.5% respectively over the next two years.
This uptick will follow a second half of 2013 that saw a slight deceleration in growth, PKF noted. In the DC area that deceleration, not surprisingly, was amplified.
A separate study by Smith Travel Research showed that average hotel occupancy through July was 68.9% for the area, down 1.2 percentage points from the same period in 2012.
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