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3000 M Hotel Concept
Market Supply and Demand Analysis
Executive Summary:
In response to the request of comprehensive insights into the feasibility of a hotel development
product at the proposed site of 3000 M in Georgetown, Washington D.C., Team 4 has conducted
an analysis of the supply and demand dynamics of this unique location. Our objective was to
provide valuable guidance to potential investors in the hospitality industry. This deliverable
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encapsulates the findings and recommendations to assist in making informed decisions regarding
the nature and scale of the investment. Our supply analysis began evaluating the existing hotel
landscape in the Georgetown area and discovered a market potential for an upscale affordable
micro hotel. To gauge the demand for a new hotel development at the 3000 M site, we conducted
a competitive analysis of the historical demand of two distinct competitive sets, a primary and a
secondary set, using the STR report and the Room Night Analysis programs. Our data analysis
demonstrates a promising opportunity for a well-positioned micro hotel development project at the
site. By aligning with current market trends and adopting a unique approach specific to this
prestigious location, investors have the potential to capture a significant share of the growing
demand in this distinct area.
Based on our inventory assessment, there is an underrepresentation of upscale affordable micro
hotels within the existing supply. This presents an opportunity for differentiation in the market,
specifically at the 3000 M site. We also observed seasonal fluctuations in the occupancy rates
with peak demand during the high visitor season of May through October, suggesting an untapped
potential for off-season strategies. Despite having less data, over the past few years, we have
witnessed growing high occupancy rates during peak seasons, indicating a robust demand for
accommodation.
Our Property:
Our initial concept for the lot was based on the simple fact that Georgetown is oversaturated with
ultra luxury properties like the historic Four Seasons and – not one, but two – Ritz Carlton properties
that claim Georgetown in their marketing – though, technically, only one exists within the
boundaries of the historic district. Essentially, there is a need for the more affordable, yet amenity-
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rich, option that is rising in popularity amongst under-35 FIT & the growing business-leisure demo
that has been disrupting hospitality metrics since remote work & “digital nomads” took off during
the pandemic.
These properties are known as Micro-Hotels: they are defined by “cabin rooms” – terminology
stolen from the cruise industry referring to their small size and lack of kitchenette – and mixed-use
communal space & events that surpass the traditional model of bar or buffet in favor of cafes open
to the public, speakeasies, destination restaurants and other unique attractions like yoga studios,
barber shops, co-op markets or radio stations. These properties recognize that certain guests see
hotel rooms as just for resting but still hope to capitalize on their new surroundings and socialize
– even on a work trip.
Some brands have taken off in emulating this concept either as independent – like the Source in
Denver, or Eaton with locations in Hong Kong, London and DC – or as part of a portfolio like
Marriott’s Moxy brand & Hilton’s Motto. Others have also entered the fray in varying degrees of
luxury from Citizen M – which really emulates this concept for median earners – and Yotel – which
does the same for the budget traveler.
Our concept was meant to be somewhere in between all of these: High end amenities like the
Eaton, a Union Market-esque retail/dining space like the Source has (and that has become a
massive new trend in DC in recent years) but, unlike Eaton – which has larger suites as well as
cabin rooms, would only have smaller spaces like Citizen M & shared accommodations like the
hostel – inspired Generator. Interestingly, the actual owner of the lot – insurance firm, Thor Equities
– has prepared a vision similar to ours. Though they plan to mix it with commercial, condo and
more traditional retail.
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They are also planning on only about 70 rooms to accommodate for the lost space going to
residential and office space. Georgetown, like the rest of the District, has very strict construction
guidelines to preserve the equality of the skyline. This prevents buildings from being too tall. The
historic status of the neighborhood – as well as the metro infrastructure underneath the main M St
NW corridor – prevents construction from going too far down or from buying nearby properties to
expand the lot. With these parameters under consideration, we believe we can accommodate 100
rooms – based on loose speculation.
Primary Competitive Set:
Secondary Competitive Set:
While choosing the secondary market, we had several factors taken into consideration. For
instance, we wanted the secondary market to be similar to the primary competitive set to make
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comparing the two sets more realistic. However, it is essential to note that structurally, there are
not enough “micro hotel” concepts in the area to fill the two sets. Hence, the secondary set also
offers more luxurious alternatives that are still appealing to fit. The list of secondary hotels is as
follows:
● Motto: Located in Washington Metro Center, this is an upper Midscale hotel, with the price
belonging to the Upscale category
● Generator: Located in Washington Dupont, this is a Midscale hotel with a mid price range
category
● Moxy Downtown: Located in Washington Downtown, this is an Upper Midscale hotel with
an Upscale price category
● Hotel Hive: Located in Washington, Foggy Bottom, this is an Upper Scale hotel with an
Upscale Price range category
Motto Washington Metro Center:
The hotel’s street address is 627 H St, NW Washington DC, 20001, USA, making it 2.2 miles away
from 3000 M St. This hotel has 459 air-conditioned rooms. The hotel also includes a wide variety
of ammonites, for instance, as mentioned in the list below:
● Boutique
● On-site restaurant
● Fitness center
● Meeting rooms
● Complimentary Wi-Fi
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The rating on Trip Advisor is 4.5 stars; the total number of ratings that led to this final rating is
1,542 guest reviews. Such a high rating could be due to the hotel’s strategic location. This hotel is
near some of the area’s most tourist locations, such as the Walter E. Washington Convention Center
and the museums, and the White House are within a few blocks. Moreover, the hotel is also located
near some of the major transportation hubs. For instance, the hotel is near Union Station for Amtrak
services and Reagan National Airport for domestic flights.
The total space available for organizing Events is 6,510 sq. ft., with the biggest room set up of
4,345 sq. ft. The hotel also has 3 meeting rooms and 245 guest rooms. The Whiskey bar (4,345 sq.
ft.) has a total capacity of 280 guests in this room, The View Room (1845 sq. ft.) has a total capacity
of 128 guests, and the private Dining Room (320 sq. ft.) has a total capacity of 20 guests.
Generator Washington Dupont Circle:
This hotel is located at 1900 Connecticut Avenue NW, Washington, USA, 20009. This hotel has
a total of 148 guest rooms available for booking, a swimming pool, an acclaimed cafe called Cafe
Integral, a meeting room, and a Mexican restaurant called Hoja Taqueria. The rating of the hotel
on Trip Advisor is 4 stars, and it is ranked 85 of 155 hotels in Washington DC. This hotel has two
meeting rooms that the guests could choose from, or the hotel can merge the two rooms to form
one big meeting room if the guests feel they need a bigger room. The hotel’s pool area, located on
the rooftop, has a total capacity of 82 guests simultaneously. This property is also one of the only
in Washington, with hostel-esque shared rooms available. The price point averages higher as they
have traditional suites, but this is a unique qualifier in its affordability.
Moxy Downtown Washington DC, Metro Center,
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The hotel is part of the Marriott Bonvoy group at 1011 K St NW, Washington, DC 20001. The
hotel has a rating of 4 out of 5 stars. The hotel has 4 event rooms in the building, leading to a total
of up to 2764 sq. ft. of event space. The capacity of the largest space is 87 guests at one single
time, and the hotel has one (1) breakout room. The hotel also has a glass-enclosed boardroom
space with a 60” HDTV and free WiFi. The hotel also does have space to celebrate weddings and
birthday parties. The prices of the rooms vary from USD 273 to USD 569.
Hotel Hive Washington DC, Foggy Bottom:
The hotel is at 2224 F St NW, Washington, DC 20037. According to Trip Advisor, the hotel has a
rating of 5 stars and is ranked no. 2 of 155 hotels in Washington, DC. Therefore, it is one of the
top hotels in the area. The size of the rooms in this hotel varies from 125 to 250 sq. ft. Some of the
amenities provided by this hotel are a bar/lounge, rooftop terrace, and taxi service. It is also
noteworthy to know that this is DC’s first Micro-hotel.
Reasoning Behind Selection of Competitive Sets:
Initially, our competitive sets were grouped in error. Generator would be swapped with Eaton if
we were trying to compare properties based on their most similar qualities. Ultimately, the STR
reports may see little differences between Generator and Motto, but the fact that shared hostelesque rooms constitute a significant segment of its booking availability should be accounted for.
With this revision in mind, essentially, the primary set is more affordable properties that have a
more hostel-esque communal quality. Meanwhile, the secondary set includes more traditional
brands like Motto and Moxy as well as more disruptor concepts like CitizenM and Eaton – all of
which are on the upper scale of price.
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The most important thing to note about our selection process is our limitations. Essentially, as the
concept of a micro-hotel is specific, simply choosing competitors based on ADR and other
traditional signifiers like meeting space or F&B would be unhelpful. Therefore, we tried to choose
hotels based on their inclusion of qualities that we wanted to adopt: cabin rooms and nontraditional retail & culinary options that are also designed to attract and welcome guests from
outside the hotel. Ultimately, with these qualities in mind, we simply do not have any more likeminded properties to include in our competitive sets without going beyond the boundaries of the
relevant neighborhoods in Metro DC / Arlington.
Competitive Set Analysis and Assumptions:
Primary Competitive Set:
From the list of DC and Georgetown hotels, the team selected four hotels that served as a primary
competitive set to our proposed micro hotel. Micro hotel products are new and vary in concept.
Therefore, this set represents the closest comparison that will compete for the same guests sharing
similar amenities we are proposing. It does, however, not supply much data as all have only been
open since the pandemic and, of course, took time to really find the numbers that will likely be
their historical average. The intention of this set is also to be more affordable and less luxurious in
its amenities as the secondary set. Though, again, a perfect set analysis would swap the Eaton from
this set with the Generator from the second.
Secondary Competitive Set:
Conversely, the second set we established had more data to analyze, therefore we considered that
our primary set and worked backwards. The aggregate demand data from the STR report for this
competitive set was more robust, so we used this data primarily to make our recommendations.
Additionally, since these hotels were open longer, and remained open during the pandemic, the
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data is skewed with lower occupancy and ADR rates than what this product should be measured
by. We assume that since travel is not back to 2019 levels according to the Visitor Reports from
Destination DC, there is room to grow this market in the future. We also assume that retail and
restaurants will come back to the area with new product offerings that will attract visitors as most
of the spaces are either closed or being demolished.
Demand Growth:
External factors that can influence profitability because of variabilities are beyond the control of
the new owners. However, the data demonstrates there is additional demand that the current supply
can fulfill. Year over year there is a 3% growth expectation in demand.
Unaccommodated Demand:
We had to make several assumptions in our segmentation decoupling of our competitive sets. First,
Yotel: it was given 15% group business due to over 5500 sq ft of meeting space and 15% contract
business due to a global contract with JetBlue for their flight crews. The remaining 70% was
determined to be transient. CitizenM has virtually no square footage of meeting space and, due to
their very unique membership system encouraging repeat business, the concept of traditional
contract business needed to be revised to them. According to the STR, however, they have massive
spaces for meetings – if you look closely though almost all of it is related to a single space – likely,
the mixed used lobby space. Eaton, again should be considered more similar to the secondary set
due to its price and amenities, has more meeting space than Yotel and breaks the mold of traditional
conference halls into multiple smaller coworking spaces. Because of these considerations, we gave
Eaton 20% group business and the rest transient.
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In the secondary set, we were able to be more specific based on available data. Moxy is the only
hotel open in our property lists before the pandemic. Because the STR report recognizes a 7%
segment of business groups, and this was the ONLY property with data submitted at that time, we
know the “average” is entirely related to them. Hive has zero meeting space and with that as a
major parameter for “business”, we decided to just simplify and assume 100% was transient. Due
to its proximity to the State Department, the university and Kennedy Center, I have no doubt that
people are staying at Hive while in town on business. However, as the traditional requirement for
surveyors like STR for MICE business is the conference space, we are going to disregard this in
our assumption.
Generator is a hostel and the largest single meeting space is basically the sum of the total so the
assumption is they are counting the lobby as their meeting space – same logic for CitizenM.
Generator’s lobby is a mixed used public cafe / bar type. Lastly, 2% of the group was assigned to
the likes of Motto as the only 2 submitted months of 2022 was an average of 8.5% and the pre
pandemic yearly average was 7% – relating to the only open hotel at the time – so the remainder
would be generous to Motto. Likewise, occupancy and room change data were decoupled based
on the openings of the hotel properties.
Demand Assumptions:
Induced Demand:
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Many factors could help the hotels increase the induced demand. For instance, if we look at
CitizenM DC/Georgetown and the demand growth over the years. There could be several reasons
leading to the growth of hotel rooms. Some of these factors could include the following:
● Recent hotel renovation: This could be a possible internal factor because the hotel has
undergone either renovation or recent upgrades to multiple facilities and hotel rooms. Some
of the renovations that could increase the demand could be to create a warm exterior that
would then welcome more guests to the hotel, as the impression created would be positive
and invite them to stay there.
● Location of the hotel: If the hotel is centrally located from major tourist attractions, it would
increase the guests’ demand to book rooms.
● Customer Service: This could help increase the demand for the hotel because if the hotel
staff provides the customers with top-notch service, it could encourage the guests to revisit
the hotel over periods.
● Recent additions to the hotel’s amenities: If the hotel has added a fresh variety of new
amenities, then this could also help spread the word across the customers and potential new
customers, thus increasing the demand for the hotel.
Accommodated and Total Room Night Demand:
Understanding the total room demand over the past few years is vital to discussing the
Accommodated and Total Room Night demand. For instance, in the base year of 2020, the total
room demand was 321,653; however, in the next year, 2021, the total room demand increased to
337,073, an increase of 15,420. The growth in 2022 was around 6,805. Therefore, the total room
night demand has been consistent over the years. However, the total number of rooms available
has consistently increased. For instance, in the year 2020, the total number of rooms available was
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488,370, and in the next year, 2021, the total number of rooms increased to 502,893, and so forth.
Moreover, the weighted accommodated growth rate for all the categories is between 1.84% and
1.85%
Unaccommodated Demand:
The unaccommodated growth rates for all the categories are “Group, transient, and contract.” All
have been determined to be consistent over the years, at 1% and 2%, respectively. Moreover, the
compound growth rate for Group and Transient categories is 1% and 2%, respectively.
Supply:
Existing and Expected Competitive Room Supply:
According to the table below, the occupancy for Yotel in 2020 was 60%, with a slight increase of
.75% in 2021. However, Yotel’s market share has constantly fallen over the years, which could
cause concern. Moreover, there has been a decrease in the room supply by the segments. Also, for
Yotel, there has been a fall in the market occupancy over the years. For instance, in 2020, the
occupancy growth was 65.86%; however, in 2023, the market occupancy was 65.75%. This could
be due to various reasons, including the recent market conditions in the country, or also due to
several internal factors, for instance, a drop in the quality of service, etc.
A similar situation and pattern could be seen with the hotel CitizenM NoMa and the other Hotels
chosen for our study.
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Additional Analysis and Justification:
Additional RNAADR Findings:
Market Conclusion:
Three decades later, the words of S. Rushmore still ring true, “To understand the investment
potential of hotels and motels, owners of lodging facilities must be aware of the many forces that
affect the value of their properties.”1
1
S. Rushmore, 1994, slide deck from Lecture Slide Session 4
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APPENDICES
Appendix A – Primary and Secondary Comp Sets
Primary Comp Set
STR
Code
Name
4000 Yotel
City
Zip
Code
Class
Price
Key
Consideratio
ns
Washin
gton,
NOMA
Washin
gton,
NOMA
20001
Upscale
Upscale
Primary
Suffici Perc
ent
enta
Rule
ge
Che
ck
yes
yes
20002
Upscale
Upscale
Primary
no
no
20024
Upscale
Upscale
Primary
no
no
monthly in STR,
daily and monthly
in SEG
20005
Upscale
Luxury
Primary
yes
yes
daily & monthly
in STR, daily &
monthly in SEG
77379 Citizen
M
NOM
A
70123 Citizen Washin
M
gton,
Capitol Federal
Center
Washin
38853 Eaton
gton,
Metro
Center
Participation
daily & monthly
in STR, only
monthly in SEG
monthly in STR,
daily and monthly
in SEG
14
Secondary Comp Set
STR
Code
Name
Class
Price
Washington, 20001
Metro
Center
Upper
Midscal
e
Upscale
264 Generat
or
Washington, 20009
Dupont
Midscal
e
Midpric
e
Secondary
yes
67802 Moxy
Downto
wn
Washington, 20001
Metro
Center
Upper
Midsca
le
Upscale
Secondary
yes
20704 Hotel
Hive
Washington, 20037
Foggy
Bottom
Upper
Upscale
Upscale
Secondary
yes
66069 Motto
City
Zip
Code
Key
Sufficie
Consideratio nt Rule
ns
Secondary
yes
Percenta Particip
ge
ation
Check
yes
daily &
monthly
in STR,
only
monthly
in SEG
yes
daily &
monthly
in STR
ONLY
yes
only
monthly
in STR,
only
monthly
in SEG
yes
only
monthly
in STR,
only
monthly
in SEG
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APPENDIX B – Hotel Overviews
PRIMARY COMP SET
Hote
Class
Distance
l
Trip
to 3000 M
TripAdviso
Price
Brand
Amenities
Total
r Avg Price
Meeting
for
Space (sq. ft)
Advisor
St. NW
Rating
Yotel
Upsc
#
Standard
Rooms
Room
377
4.9 miles
4.0
$111
Contract/Group
info
Upscale
ale
Chain
Managem
Very
ent
Upsc
en M
ale
296
3.3 miles
4.0
$109
Upscale
Chain
/
Minimal Group
spa,
& Contract
Meeting rooms,
Bar, Gym.
963
No Group
Managem
Very
NO
ent
Good
MA
Fitness
5500
Restaurant,
Good
Citiz
Pool, Bar / lounge,
No Contract
16
Citiz
Upsc
en M
ale
252
3.7
4.0
$119
Upscale
Chain
Bar,
Managem
rooms.
Meeting
958
Very
Capi
No Group
No Contract
ent
Good
tol
Eato
n
Upsc
ale
209
1.9
5.0 Very
$152
Luxury
Chain
Excellen
Managem
t
ent
Meeting
rooms,
Bars,
Fitness
Center, Restaurant,
Nightclub
/
DJ,
Banquet room, Spa.
7500
Minimal Group
No Contract
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SECONDARY COMP SET
Hotel
Class
Distance
#
to
Trip
3000
TripAdvisor
Price
Brand
Amenities
Total Meeting
Avg Price for
Space (sq. ft)
Advisor
Room
M
St.
Standard
Contract/Group
Rating
MOXY
Upp
Washingt
er
on DC
Mid
s
NW
200
1.9 miles
Room
4.5
$109
info
Upscale
franchise
Uppe
Hive
r
Bar
/
lounge,
Fitness
Excelle
center, Meeting
nt
rooms,
scale
Hotel
Pool,
1324
Minimal
Contract
Nightclub.
83
0.9 miles
5.0
$95
Upscale
Some Group
independe
Bar,
0
nt
restaurant.
Excelle
No Group
No Contract
Upsc
nt
ale
Generato
Mids
r
cale
148
1.4 miles
4.0
$71
Upscale
Chain
Manageme
Very
Bar,
restaurant,
Meeting rooms,
nt
Good
Pool,
Conference
1425
Some Group
18
facilities, Fitness
Washingt
Center.
on DC
Motto by
Hilton
Minimal
Contract
Uppe
245
2.3 miles
4.5
$84
upscale
Chain
Fitness
r
Excelle
Manageme
Center, bar,
Washingt
Mids
nt
nt
Coffee shop.
on DC
cale
4665
Some Group
Minimal
Contract
19
APPENDIX C – Competitive Indices
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APPENDIX D – RNAADR Final Output
21
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APPENDIX E – Total Room Night Demand
APPENDIX F – Accommodated Demand Growth Rates
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Introduction:
The Georgetown neighborhood of Washington D.C. is a unique area that breeds quaint
luxury among its picturesque cobblestone streets. Its rich history provides an oasis for both
luxurious communities as well as luxury hotels. Georgetown is home to M Street, a busy street full
of some of the city’s top restaurants, shops, and hotels. Here is where you will find properties such
as the Four Seasons, which welcomes visitors as the first building they see when crossing the river.
If a guest is looking for a high-end luxury experience, more often than not they will have a
Georgetown hotel amongst their considerations. It is due to the history of luxury as well as a
thorough analysis of market entry that we see best fit to bring in a luxury property to M Street.
Luxury is a central characteristic of Georgetown, and as mentioned, the market is filled
with various high-end properties. In familiarizing ourselves with the market, we noted that the
clear market leader in both Georgetown and Washington D.C. as a whole is the Four Seasons
Georgetown. The property is strategically located at the intersection between Pennsylvania
Avenue and M Street and due to its positioning attracts both business and leisure travelers alike.
Like the Four Seasons, we believe that our property which will be located on 3000 M Street will
have the strategic location as well as similar amenities to attract both business and leisure travelers.
Based on our analysis and as previously mentioned, we saw that the best market entry opportunity
is to create a luxury property on the current site.
Our Property:
Specific to the property located at 3000 M Street, NW, we look to create a boutique
property of 85 rooms which would carry various room types including a majority of single and
double rooms, as well as some suites. Due to price-point, we believe that the hotel should carry a
portfolio made up of more doubles and singles rather than suites due to the market segment and
location, which would match what many of our competitors are providing. Up to this point in the
planning process, a room split of 35 single rooms, 40 doubles and 10 junior suites would seem
most beneficial to the property. We do not want to sit in the market with too many suites that we
cannot fill, but at the same time it’s important to be cognizant of where we can maximize revenue
potential, which would be through the single and double room layouts. Due to limited room
capacity at the property, and knowing that there may be times where the suites are occupied, in
order to accommodate friends and families as well as groups, we have created a concept which
allows several rooms to be connected or divided as needed so that families can enjoy their time
together.
Within the hotel, the lobby will be an open-concept design that provides an opportunity for
both business travelers as well as leisure travelers to converse and lounge. Similar to some
competitors in the market, we are looking to open a restaurant which would be facing one of the
exterior sides of the premises facing M street to attract foot traffic. This restaurant would be of
small scale and would be run by a top restaurant group and managed by the hotel. As M street is a
location known for both its high end food and drink, introducing a well-known restaurant to the
mix would provide a steady source of revenue for the property. Currently, the Four Seasons has
Bourbon Steak, and the Rosewood Hotel has Cut by WolfGang Puck, which are restaurants that
we will be using as our benchmark as to what kind of branded restaurant we would like in our
hotel. As the hotel would be managing the restaurant, it gives guests the opportunity to order food
internally via room service, which would appeal to business travelers or tourists tired from travel.
In addition, to the restaurant other facilities provided within the hotel include fitness center space.
A rooftop also will be available for guests to lounge. Similar to the Watergate hotel, the rooftop
will be open year-round and will provide a strong source of revenue. The bar would be open to our
guests as well as to the public, which would create a great opportunity for the property to be
marketed through earned channels and also a way to attract visitors looking for a unique
experience. In addition to the restaurant, we noted that event space is crucial for a hotels success
in Georgetown, as space is often limited. We are looking to create an open-concept event space
that can be adjusted and customized based on the event being held. As our competitors we look to
hold a presence in the Events Space by providing a capacity of close to 300 guests. Our flexible
floor plans will allow us to best comfortably accommodate these guests.
Primary Competitive Set:
As noted in Appendix A, our primary comp set consists of: The Graham Washington D.C.
Georgetown, Park Hyatt Washington D.C., Ritz-Carlton Georgetown, Westin Georgetown
Washington D.C., and the Melrose Georgetown Hotel. The following hotels were selected because
we thought they would be our direct competition within the Georgetown/Washington D.C. market
due to our market entry strategy. Under Smith Travel Research (STR) Guidelines, these properties
are all considered in the ranking of upscale, upper upscale, and luxury properties. In analyzing this
segment of upscale and luxury properties, we looked for hotels which best fit our buyer personas,
for example the hotels in our primary comp set provide a luxury product and attract a customer
who is willing to spend upwards to $400 dollars to stay at service-oriented property.
When looking at The Graham Georgetown, the property had 57 rooms and is of 4 star
caliber. The low rate for the property according to the STR report is $299 and can fluctuate
accordingly with demand. There are various characteristics to this property, including that it
provides a luxury service, it falls under a boutique category, has adequate event space as well as
has a rooftop bar. The amenities that this hotel provides are similar to our proposed property, in
addition to this their price point is similar which is why we defined them as direct competitors.
The Park Hyatt Washington D.C. is a wonderful property located in the West End
neighborhood of the city. It is a well-known luxury brand of 220 rooms that provides consistent
and quality service to its guests. According to STR, they hold a low rate of $350. Specific to the
character of the hotel they provide that luxury experience we would provide our guests, they hold
an adequate amount of event space, and they provide world class dining amenities including a
branded restaurant connected to in-room dining options. The Park Hyatt Georgetown is one of the
larger hotels in our comp set, coupled with the amenities they offer as well as location and price
point, we note Park Hyatt Washington D.C. as part of our direct competition.
The Ritz-Carlton Georgetown is one of the closest properties to us in proximity and is
located close to the Potomac River waterfront. The property’s brand provides luxury throughout
its experience. The hotel is equipped with 86 rooms and suites and a low rate of $295 according to
the Smith Travel Research report. Due to its location, prestige, price point, room mix, and overall
presence in the market, the Ritz-Carlton is a part of our direct competition.
The Westin Georgetown is neighbors with the Park Hyatt Washington D.C, it is located in
West End and holds 248 rooms, 25 suites, and is home to three restaurants. The property is in our
primary comp set due to its location and its strong presence in the area. In analyzing the hotel, we
realized that our guest profile was similar to those. Although below the Park Hyatt price point, the
Westin still holds its brand image as a central component to attraction.
Our fifth hotel to round out the comp set is The Melrose Hotel Georgetown, which is a
historic hotel located on Pennsylvania Avenue, steps away from Georgetown. The hotel is a luxury
boutique property that provides a personalized experience for all guests. They have a combination
of 240 hotel rooms and suites as well as an on site farm to fork restaurant. As a Remington property,
the hotel provides a sense of security for guests revolving service and amenities provided. It is due
to the location, price point, and boutique luxury flair of the property, that we selected this hotel to
round out our direct competition, our primary competitive set.
Secondary Competitive Set:
Our secondary competitive set was created with the idea of analyzing potential competitors
in the market whom we do not consider as our direct competition in the market. As noted in
Appendix A, the properties in our second comp set include the Watergate Hotel, The Four Seasons
Georgetown, Fairmont Washington D.C., Ritz-Carlton Washington D.C., The Wink Hotel. These
hotels were analyzed based off of their location, price point, market mix, and customer profile.
When defining the secondary comp set the first hotel which came to mind was that of the
Four Seasons Georgetown. As mentioned, the Four Seasons is one of the most luxurious properties
in Washington DC, and holds the top spot in the Georgetown market. We wanted to have them in
our set as a point of reference, by no means are we comparing ourselves to the top of the market,
but we would like to have them as a point of reference to hold ourselves below that market point.
The Four Seasons Georgetown is a property which hosts 222 rooms and holds a low rate of $395,
the property is known for a highly flexible average daily rate (ADR) scale and in high season can
hit room rates of over $1000 USD for a standard room. The hotel is mixed with both standard
rooms (singles/doubles) as well as a vast array of suites. It is due to the hotel being in the top of
the Georgetown market that we placed them in our secondary competitive set.
We listed the Fairmont into this competitive set for it is on the same block as both the Park
Hyatt and the Westin Georgetown. The reason this hotel was put into the second competitive set
and not into the first is that the hotel is at a higher price point than both the Park Hyatt and the
Westin properties. The hotel has 413 rooms and has a low rate $319 according to the Smith Travel
Research report. The property is newly renovated and provides a boutique feel in a luxury space.
The property has various bars throughout and provides outdoor gathering spaces as well as a
variety of large and small break out event rooms. As all properties, depending on the market, our
customer segment may be considering both their property and ours when selecting where to stay
in Washington D.C, it is for this reason they were selected to be in our secondary competitive set.
The Watergate Hotel was selected in our second competitive set, they are 336 room
property located adjacent to the Kennedy Center for the Arts. The property is closest to the RitzCarlton Georgetown in proximity but is on t
