US President-elect Barack Obama, his wife Michelle and their daughters Sasha, 10, and Malia, 7, will move to the Hay-Adams Hotel.

Built in 1928, the luxury hotel is separated from the White House only by Lafayette Square, a grassy square block.

Mr Obama had asked to stay at Blair House, the Government's official guest residence just across Pennsylvania Avenue from the White House, but the Bush Administration said it was booked solid to January 15.

Apart from a November 10 White House meeting with President George W. Bush, Mr Obama has largely avoided Washington since his historic election as the first African-American US president on November 4. Most of his time during the transition period has been spent in Chicago.

The future presidential family wrapped up their vacation yesterday that began on December 20 at a $US9million ($A13million) rental home in Kailua, Hawaii.

The Hay-Adams has 145 rooms and suites featuring marble bathrooms, carved plaster ceilings and ornamental fireplaces and balconies. Some of the rooms have a direct and unobstructed view of the White House.

A room in the penthouse's presidential suite normally sells for up to $A7200 dollars a night and its amenities include custom Italian bed linens and towels, goose-down duvet and pillows, a Bose CD system, Fiji water and Etro toiletries.

Mr Obama's agenda is already busy even before the inauguration takes place.

His daughters are to begin the school year in Washington at the private Sidwell Friends School. The new Congress, stacked with a greater Democratic majority, will be sworn in on Tuesday.

And Mr Bush has invited Mr Obama to a White House lunch on Wednesday, along with former presidents Bill Clinton, George H.W. Bush and Jimmy Carter.

Past presidents have waited until a time closer to their inauguration to move to Washington. The New York Times reported Ronald Reagan waited until six days before he was sworn in and Jimmy Carter waited until the day before.

The Hay-Adams has attracted prominent travellers and Washingtonians, including author Sinclair Lewis, actress Ethel Barrymore and aviators Charles Lindbergh and Amelia Earhart.

The hotel was named after John Hay, private assistant to president Abraham Lincoln and later secretary of state, and Henry Adams, an author and descendant of presidents John Adams and John Quincy Adams. Both men lived at the site.