Scoop: D.C. hotels took a hit during Trump takeover

By the numbers: Sales tax collections for D.C. hotels dropped 11.8% in August compared with August 2024, according to data from D.C.'s chief financial officer.

• Restaurant sales tax collections edged up 0.2%.

What they're saying: August and September were the worst months of the year for Donohoe Hospitality Services, according to the company's president, Thomas Penny.

• The group, which manages six hotels in the city and more than a dozen across the DMV, has seen DOGE cuts and less government travel affect hotel bookings, Penny told Axios.
• But "federal troops being on the streets of D.C., and the city being in the national news and portrayed as less than safe, also caused for folks to choose other destinations," he said.

Plus: The "perception of the city being unwelcoming to international travelers, most notably Canada and Europe, has also had an impact on demand."

Context: The D.C. CFO's data is not inflation-adjusted, a spokesperson told Axios, "so the slightly higher amount for restaurants may just reflect price increases, not increased activity."

What they're saying: "In this environment, 'flat' is essentially a decline," Shawn Townsend, the head of the Restaurant Association Metropolitan Washington, told Axios in an email.

• "When you factor in rising food costs, labor costs, and utilities — all of which have climbed substantially — restaurants are operating on even thinner margins than before," he said. "August was especially tough."

What we're watching: With more federal layoffs and a government shutdown, D.C. restauranteurs have told Axios they're bracing for another slowdown.