Tourism Boom: Alexandria’s lodging sector rebounds to record highs

In 2024, Alexandria set a new record for consumption tax revenues, with sales, meals, and lodging taxes bringing in a total of $86 million, according to Visit Alexandria, a nonprofit organization focusing on Alexandria’s business and tourism communities.

This figure surpasses the previous record of $81 million set in 2023 and marks a 30% increase over pre-pandemic levels, according to the organization’s annual report.

The organization shared a press release with The Wash stating that Alexandria’s lodging sector is finally making a solid comeback after years of lagging in the wake of the COVID-19 pandemic. 

From the $86 million consumption tax revenue, including sales, meals, and lodging this year, the city’s lodging tax revenues reached nearly $15 million, a significant milestone for an industry struggling during recovery by Surgeing by $3 million.

The average revenue per available hotel room rose to $118 in 2024—a record high that puts Alexandria ahead of its neighbors, including Arlington and Fairfax. 

This increase shows that more people stay in the city and spend more money on their visits.

For Allie Lee, a salesperson at the newly opened HOTEL, AKA Alexandria, growth is more than just numbers on a page.

“In my opinion, there was definitely a rise in the market, especially this year compared to last year,” she said. 

The hotel, which opened in 2023, has already felt the effects of Alexandria’s tourism rebound, welcoming a steady flow of business and conference guests. “What attracts people to Alexandria is definitely the history,” Allie adds. “It’s what makes this place special.”

Jim Blanco, the owner of The George of Old Town Hotel, also shared his perspective on Alexandria’s thriving tourism industry. “It’s fantastic,” Jim said of the current business state.

 “The city has fully recovered from COVID, and I think we’re at pre-pandemic levels or even higher now.” 

Having purchased his property during the pandemic, Jim has witnessed firsthand how the city has bounced back and thrived beyond expectations. “People come for the history, but they stay for the great restaurants, the shops, the events—it’s a place that just makes you feel good,” Jim explained.

Blanco told The Wash the charm of Alexandria lies in its year-round appeal. 

“Every Saturday, there’s a farmer’s market at the square—the oldest farmers market in the country, where George Washington himself brought his produce,” Blanco shared.

“Then there are events like New Year’s Eve celebrations, Independence Day week, and countless others throughout the year that keep people coming back. It’s a community that knows how to celebrate its history and its people,” he added.

The resurgence of tourism has brought a renewed sense of energy to the city—cobblestone streets are bustling again, local cafes are filled with visitors, and live music can be heard drifting from local restaurants. 

Local Benefits: How Tourism Helps the Community

From the $86 million, Alexandria’s non-residents paid $61 million, an estimated 71% of consumption taxes. “Alexandria’s 160,000 residents also appreciate the amenities that come along with a vibrant visitor economy, ” said Kate Ellis, a board chair, in a letter shared with the organization’s annual report.

These funds are crucial for supporting city services, like maintaining parks and welcoming public spaces. “which means that tourism directly saves the average Alexandria household $822 per year,” according to the report.

Tourism in Alexandria improved the employment sector by 6%, with 5,611 jobs created in 2023 compared to 4,142 in 2020, according to a presentation shared with The Wash by email from the Visit Alexandria organization.

A Vision for the Future

According to the press release, Todd O’Leary, the new President and CEO of Visit Alexandria, optimized promotional plans and expanded the neighborhood program to distribute the benefits of tourism across the city.

Visit Alexandria also plans to leverage significant events like the U.S. presidential inauguration, WorldPride DC in 2025, and America’s 250th birthday in 2026 while boosting mid-week business through meetings and group travel.

The Wash tried to obtain more information about the organization’s plan for promoting the city, but it was referred to documents shared with The Wash through emails.