We report the first observation to our knowledge of room-temperature continuous-wave laser operation on the (5)I(7)→(5)I(8) transition of Ho(3+) ions in a KY(3)F(10) single crystal. Using a Tm-doped silica fiber laser operating at 1938 nm as a pump source, a maximum laser power of 1.8 W was obtained at a wavelength of ~2040 nm for 27 W of absorbed pump power with a slope efficiency of 19.1% with respect to absorbed power. At low cavity output coupling, the lasing wavelength shifted to 2060.5 nm. The beam propagation factor (M(2)) was measured to be <1.06 at the maximum output power, confirming fundamental transverse-mode (TEM(00)) operation. Performing a Caird analysis, we determined resonator round-trip losses and intrinsic slope efficiency of 30% and 43.8%, respectively.