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Gaithersburg hotel occupancy fell in 2025 as federal travel softened, officials say
Summary
City economic staff reported 2025 hotel occupancy at 64.3% (down 3.5% year‑over‑year), average daily rate $126 and revenue per available room $81, citing reduced government travel and conference activity as drivers.
Economic Development staff told the council on March 2, 2026 that Gaithersburg's 2025 hotel year‑end metrics showed occupancy at 64.3% (down roughly 3.5% from 2024), an average daily rate of $126 (down $2.50) and revenue per available room (RevPAR) of $81 (down about 6%). Total hotel revenue was reported at just under $60 million. The presentation tied the decline to reductions in government travel, canceled conferences and federal contracting uncertainty, while noting the city's biotech cluster continues to bring overnight demand.
Staff said they will continue outreach and partnership work with regional economic development organizations and Visit Montgomery to support the hospitality sector and return to council later in the year with additional updates.
