According to the New York Times, Euro Capital Properties, which bought the Watergate Hotel in 2010, has announced plans for a $125 million (£80.3m) renovation.
The hotel has been vacant for the past seven years with many previous renovation attempts failing.
The renovation will create 100 new rooms and 17,000 square feet (1,579sqm) of meeting space, including a grand ballroom.
"The original Watergate Hotel, even though it was successful in the 1970s and 80s, wasn’t taking complete advantage of the full potential of the property and its great location on the Potomac River," Jacques Cohen, a principal of Euro Capital, said in an email to the Times.
The company plans to address that problem with the addition of four large community terraces, a rooftop bar and lounge and enhanced private balcony space in 50% of the hotel’s rooms.
The Times also reported London architecture and design firm Ron Arad has designed a multimillion-dollar ornamental sculpture that will wrap the front entrance of the hotel, complementing the existing architecture.