United States -  Seattle

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, and attempts to reignite the local economy faced multiple setbacks. Numerous convention cancellations, the shuttering of the 2020 cruise season, the halt of inbound domestic and international travel, and dozens of hotels temporarily ceasing operations resulted in revenue losses of nearly 70.0% (compared to year-end 2019 figures). In 2021, a strong summer, the partial return of the Alaska cruise season, increased border crossings from Canada, and growing passenger traffic at Seattle International Airport propelled Seattle’s RevPAR to increase nearly 60.0% from the level achieved in 2020. Renewed testing requirements for Canadian travelers, coupled with Omicron fears, reignited concerns about the city’s trajectory for recovery in early 2022; however, those concerns were short-lived, and the market has experienced accelerated growth and positive news since then. In June 2022, Seattle was named one of 16 U.S. cities to host the FIFA World Cup in 2026, and in 2023 and 2025, Seattle will host the Division 1 NCAA basketball tournament games. The highly anticipated opening of Summit, Seattle's new convention center expansion project; the continued return of office workers to the city; and the strong leisure visitation trends all bode well for the city’s recovery.

* 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.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

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)