Madison Realty Capital Provides Loan for 326-Key Hotel Washington in Washington, D.C.
NEW YORK — Madison Realty Capital, working with Newbond Holdings, has provided a loan to a joint venture between Schulte Hospitality Group and an institutional investment partner for Hotel Washington, a 326-key luxury independent hotel at 515 15th Street NW in Washington, D.C., the firm announced Oct. 7. Eastdil Secured advised the joint venture.
Schulte Hospitality Group, a boutique and lifestyle hotel specialist that manages more than 250 properties across 40 states and five countries, operates the hotel directly.
Madison Realty Capital Financing for Hotel Washington
The loan from Madison Realty Capital supports the next phase of the ownership group's business plan for the property. Samir Tejpaul, Head of Investments at Madison Realty Capital, said Washington, D.C. is "home to one of the most supply-constrained luxury lodging markets in the country, with few independent luxury hotels delivered in two decades and an exceptionally limited development pipeline."
"Hotel Washington is a trophy asset in an irreplaceable location that has consistently captured share from its competitive set as broader market fundamentals in Washington, D.C. have normalized," Tejpaul said. "The ownership group has strengthened the property's operating performance across all business lines, and we are pleased to provide a financing solution to support the next phase of their business plan."
Neil Luthra, Founding Partner at Newbond Holdings, said: "Hotel Washington is an exceptional, institutionally maintained asset in one of the most prominent submarkets in the country, just steps from the White House. This transaction builds on our longstanding relationship with Schulte, and the combination of experienced ownership, product quality, and the irreplaceable Washington, D.C. location made this a compelling opportunity."
Property Details and History
Hotel Washington sits at the corner of Pennsylvania Avenue and 15th Street NW, immediately adjacent to the U.S. Treasury and one block from the White House. The property offers rooftop and upper-floor views of the White House, the Treasury Building and the Washington Monument, with sightlines down Pennsylvania Avenue to the U.S. Capitol. The building totals approximately 125,000 square feet.
The hotel originally opened in 1917 as the Hotel Washington. It operated as the W Washington D.C. beginning in 2009 before returning to independent operation under its original name following the sponsorship's 2021 acquisition. A comprehensive $52.7 million renovation was completed in 2018 and 2019 under prior ownership.
The property comprises 295 guestrooms and 31 suites, including the 1,150-square-foot Presidential Suite and seven Monument View Corner King Spa Suites. Amenities include:
- 21,273 square feet of indoor and outdoor meeting and event space across 13 venues, anchored by the 6,205-square-foot Grand Ballroom
- A 2,826-square-foot full-service spa and a 24-hour fitness center
- Four food and beverage outlets totaling 663 seats, led by VUE, a rooftop lounge and terrace overlooking Pennsylvania Avenue and the National Mall, as well as Fireclay, the Lobby Bar and The Patio
Washington, D.C. Hotel Market Context
The financing comes as Washington's lodging market shows improving performance. Cushman & Wakefield reported Washington, D.C. hotel occupancy of 77.2%, an average daily rate of $212 and revenue per available room of $164 in the second quarter of 2026, with occupancy up 4.3% and average daily rate up 4.5% year over year. For the week of Sept. 13–19, 2026, occupancy reached 82.3%, up 10.7% from the comparable 2025 week, while revenue per available room rose 23.9% to $194.23.
The hotel is positioned to benefit from a calendar of business and events across Washington and the greater DMV area. Convention bookings in 2027 are expected to be the strongest since 2017, and the return of the IMF and World Bank annual meetings, the 2027 NFL Draft and upcoming election cycles are all expected to further drive lodging demand.
The outlook is not uniformly positive. Marcus & Millichap expects average daily rates to contract across most Washington submarkets and chain scales, with luxury hotels as the main exception. The firm also cautions that government-shutdown concerns and continued National Guard deployment in the urban core could weigh on traveler perceptions and bookings through at least the end of 2026.
About the Participants
Madison Realty Capital is a real estate private credit manager focused on U.S.-based commercial real estate lending strategies. As of June 30, 2026, the firm and its controlled affiliates manage $24 billion in assets on behalf of a global institutional investor base. Since 2004, Madison has completed $91 billion of real estate transactions.
Newbond Holdings is a real estate and hospitality-focused investment platform that makes debt and equity investments across hospitality, office, multifamily and other real estate sectors. Its principals have invested more than $20 billion across real estate assets and related operating and technology businesses.
Schulte Hospitality Group, headquartered in Louisville, Ky., with an office in London, was founded in 1999 and manages properties under brands from Marriott, Hilton, IHG, Hyatt and Graduate Hotels.
Sources
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