Seattle is home to a diverse set of industries, including aerospace and defense, high technology, transportation and logistics, telecommunications, education, and health care. The city is also a popular leisure destination, especially during the peak summer months. Occupancy levels increased annually from 2003 through 2007 during a strengthening economy, primarily led by the high-tech sector. Similar to national trends, occupancy declined in 2008 and 2009 because of the recession, although declines were more tempered when compared with other top U.S. markets during that period. Occupancy started to increase again in 2010, a trend that continued through 2015. In 2016, however, the strengthening U.S. dollar affected leisure travel to/from Canada during the shoulder periods. Furthermore, supply growth outpaced demand growth that year, leading to a nominal decline in occupancy and relatively moderate ADR growth. Nonetheless, occupancy rebounded to an all-time high in 2017. Despite continued supply increases, lodging demand was fueled by the significant development projects and company expansions in the metro area, which resulted in occupancy levels in the mid-70s through 2019.

Seattle effectively shut down in early March 2020 as a result of the COVID-19 pandemic. Numerous convention cancellations, the shuttering of the 2020 cruise season, the halting of travel, and the temporary closure of dozens of hotels resulted in revenue losses of nearly 70.0% compared to 2019 figures. In 2021, strong demand levels during the summer months, supported by pent-up leisure demand and rising passenger volume at Seattle International Airport, propelled Seattle’s RevPAR to increase nearly 60.0% from the level achieved in 2020. In 2022, the market experienced more robust growth given the record-breaking cruise season and the return of commercial demand. Furthermore, in June 2022, Seattle was named one of 16 U.S. cities to host the FIFA World Cup in 2026. Seattle's convention center expansion (known as the Summit) opened in early 2023, doubling the city's capacity to host convention events. While commercial demand was expected to strengthen further in 2023, national economic concerns, especially within the technology industry, have hindered growth thus far. Nevertheless, the outlook for Seattle remains optimistic, supported by Boeing's $1.2-billion U.S. Air Force contract, which was signed in February 2023, and continued improvements to leisure attractions, such as the Seattle Waterfront and the Climate Pledge Arena.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

Seattle RevPAR Change

Seattle RevPAR

For more information, please contact:

	Kasia Russell, MAI Senior Managing Director Regional Practice Leader, Consulting & Valuation [email protected] +1 970 227-7799 (w)
	Breanna Smith, MAI Managing Director Valuation, Market & Feasibility Consulting [email protected] +1 303 667-8860 (w)