After consistent steady improvement since the end of the Covid pandemic, demand fell modestly in 2025. In December 2025, the trailing twelve-month occupancy rate was 69.0% for the overall Seattle market, down from 70.4% one year ago. Contributing factors likely include steep drops in international travelers particularly from Canada and softening or lack of growth in business and leisure travel due to tariffs and economic conditions. Balancing the soft demand, development activity has been limited and will not result in a significant increase in supply in the near future. Demand in the coming year is likely to remain relatively stable with no signs of a general rise in international, business or leisure travelers balanced with a one-off bump in demand likely from the six FIFA World Cup matches to be held in Seattle in 2026.
Immediately prior to the pandemic, trailing twelve-month occupancy was 73.5% in Q1 2020 which fell to a low of 32.6% in February of 2021. Overall market occupancy improved to 55.8% in Q1 of 2022, to 67.5% in Q1 of 2023 and to 68.3% in Q1 of 2024 then to 70.4% in Q4 2024. ADR fell from $160 in January 2020 to $90 in March of 2021 with the onset of the pandemic. ADR then consistently improved in the following years notching $181 in Q4 2024. This translates to a significant increase in RevPAR from $30 in Q1 2021 to $128 in Q4 2024. This is above the RevPAR of $118 in January 2020 just prior to the pandemic.
However, demand fell slightly in 2025 to a trailing twelvemonth occupancy of 69.0% in Q4 2025. ADR also dipped slightly to $180 in Q4 2025. As a result, RevPAR fell to $124 in Q4 2025.
In Q4 2025, there were seven sales of hotels in the greater Seattle market with prices exceeding $5,000,000. This includes the sale of the 234-room SpringHill Suites by Marriott in Seattle for about $218,000/room and the sale of three Sonesta Select hotels in Bellevue and Renton as part of a larger portfolio sale. Prices ranged from about $91,000/room up to $127,000/room. The 58-room Best Western Sky Valley Inn in Monroe sold for $198,000/room. Transaction volume in 2025 fell to $431 million from $538 million in 2024 but is reasonably consistent with the sales volumes in the past few years which has fluctuated a fair amount year to year. Three hotels are now under construction ranging in size from the 128-room SpringHill Suites in Lakewood up to the 173-room dual branded SpringHill/Towne Place Suites in Everett. There are a total of 423 rooms currently under construction which represents about 0.8% of current supply in the Seattle market. New hotel deliveries in 2026 and 2027 will result in only modest new supply primarily in suburban areas.
The Seattle hotel market in 4Q 2025 reflects a modest softening in demand, with occupancy, ADR, and RevPAR dipping slightly after several years of steady post pandemic recovery. Limited new supply and ongoing economic pressures—combined with reduced international travel and tariff impacts—continue to influence market performance. Explore our full Seattle hotel market review for comprehensive analysis and forward looking trends.
4Q 2025 Seattle Hotel Market: Key Data Points
- Occupancy Edges Down: Trailing twelve month occupancy declined to 69.0%, down from 70.4% the prior year.
- ADR Slightly Lower: The average daily rate (ADR) dipped from $181 in 4Q 2024 to $180 in 4Q 2025.
- RevPAR Softens: RevPAR declined to $124 in 4Q 2025, down from $128 in the previous year.
- Muted Development Pipeline: Only 423 rooms are currently under construction, representing 0.8% of existing supply.
- Sales Volume Declines: Hotel transaction volume decreased to $431M in 2025, down from $538M in 2024.
- Select Markets Outperform: Submarkets such as Seattle CBD (72.4% occupancy) and South Lake Union (73.2%) posted year over year occupancy gains.
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