So what made Trump and his team invest an estimated $200 million in a new luxury hotel in Washington D.C.?

Image: http://thewashingtonlobbyist.com

1. Location

It’s the first rule of any real-estate investment: location, location, location. Hotels, as much as any other real-estate investment, must be in a profitable location to do well. Located on 12th Street and Pennsylvania Avenue, the new Trump hotel is in the middle of capital traffic. It is just walking distance from government offices and popular tourist destinations.

2. Demand

There are so many reasons to come to the capital: business, government, tourism. In 2011, hotel occupancy in DC was an estimated 69% compared to a nationwide occupancy of only 61%. The demand for Washington DC hotels is higher than the rest of the US.

Also, travel rates in general are supposed to be following an upward trend. Trump is trying to capitalize on increased travel to the capital in coming years.

3. Society’s Elite

Despite the demand for luxury hotels, a new one hasn’t opened in DC in years. Who is staying in Washington DC? Business people and government officials, the upper/upper-middle class. Society’s elite want to stay in the latest and greatest hotels. This is what you get with the Trump name, an insinuation of luxury, class, money. Trump knows his market and knows the demand for luxury hotels in a big city like DC.

Image: www.bestourism.com

4. History & Height

The new hotel will require renovating the old post office building, which is already a tourist destination. Trump has promised to preserve the historical features of the building in renovation. The building itself generates hype because its 315-foot clock tower which is the second tallest building in Washington behind the Washington Monument.

The hotel is expected to have a spa, more than 250 rooms, restaurants, and conference facilities. The mass publicity Trump has already gotten from this real-estate investment is profound. We’ll have to see how the hotel fairs in 2016 when it is due to open. Knowing Trump, it’ll be a gold mine.

Would you stay in the new Trump Hotel in Washington DC?