Seattle Hotel Market Report

The following reflects Seattle hotel market conditions as of Mid-Year 2026.

Demand softened modestly in the first half of 2026 after several years of steady post-pandemic improvement. The trailing twelve-month occupancy rate for the overall Seattle market stood at 68.6% in the second quarter of 2026, down from 69.7% a year earlier. Likely contributors include a marked pullback in international travel, particularly from Canada, along with softer business and leisure travel tied to tariffs and broader economic headwinds. Demand did tick up in June 2026 around the FIFA World Cup matches held in Seattle, but the boost fell short of expectations and was not enough to lift year-over-year performance. On the supply side, development activity has remained limited and is not expected to add meaningfully to inventory in the near term. Kidder Mathews expects the market to improve gradually, with modest gains in occupancy and average daily rate (ADR) ahead.

Looking at the longer trend, trailing twelve-month occupancy stood at 73.5% in the first quarter of 2020 before the pandemic drove it down to a low of 32.6% in February 2021. It then recovered steadily — 55.8% in the first quarter of 2022, 67.5% in the first quarter of 2023, 68.3% in the first quarter of 2024, and 70.4% by the fourth quarter of 2024 — reaching 69.7% by the second quarter of 2025. ADR followed a similar arc, falling from $160 in January 2020 to $90 in March 2021 before climbing back to $181 by the second quarter of 2025. Together, these dynamics pushed RevPAR from a pandemic-era low of $30 in the first quarter of 2021 up to $127 by the second quarter of 2025. In the second quarter of 2026, however, occupancy eased to 68.6% while ADR rose modestly to $182, leaving RevPAR at $125 — a slight decline from the prior year despite the continued growth in room rates.

Investment activity remained measured in the first half of 2026, with six hotel sales in the greater Seattle market priced above $5 million. The largest by room count was the 396-room Hilton Seattle Airport & Conference Center, which traded for roughly $45,000 per room; the new ownership plans a comprehensive renovation targeted for completion in 2027. On a per-room basis, the standout sale was the 28-room boutique Inn at Langley, which sold for $471,000 per room. Trailing twelve-month sales volume fell to $378 million, below the three-year average of $435 million but broadly in line with the year-to-year fluctuation the market has seen recently.

New hotel supply remains limited. Two projects are currently under construction: the 128-room SpringHill Suites in Lakewood and the 121-unit short-term rental property Aerolux in Seattle, together totaling 249 rooms — about 0.5% of current market inventory. Deliveries expected in 2027 should add only modest new supply, which should help support occupancy going forward. Several additional hotels have been proposed, but none have yet broken ground.

Frequently Asked Questions

What is the current hotel occupancy rate in Seattle for Mid-Year 2026?

The trailing twelve-month hotel occupancy rate in the greater Seattle market was 68.6% as of the second quarter of 2026, down from 69.7% one year earlier, according to Kidder Mathews research. The decline reflects softer demand from a pullback in international travel and broader economic headwinds, partly offset by a demand boost from FIFA World Cup matches held in Seattle in June 2026.

What is the average daily rate (ADR) for Seattle hotels in 2Q 2026?

Seattle’s trailing twelve-month average daily rate reached $182 in the second quarter of 2026, up modestly from $181 the prior year (Data source: STR, CoStar). ADR has climbed steadily since bottoming out at $90 in March 2021 during the pandemic.

What is RevPAR for the Seattle hotel market in 2Q 2026?

Seattle’s trailing twelve-month RevPAR (revenue per available room) was $125 in the second quarter of 2026, down slightly from $127 a year earlier, according to Kidder Mathews research. The decline was driven by softer occupancy, which outweighed the modest increase in room rates.

How many hotel rooms are currently under construction in Seattle?

Two hotels totaling 249 rooms are under construction in the greater Seattle market as of Mid-Year 2026: the 128-room SpringHill Suites in Lakewood and the 121-unit short-term rental property Aerolux in Seattle. Combined, this new supply represents only about 0.5% of the market’s existing room inventory (Data source: Kidder Mathews Valuation).

What was the largest hotel sale in the Seattle market in 2026?

The largest hotel sale by room count in the first half of 2026 was the 396-room Hilton Seattle Airport & Conference Center, which sold for approximately $45,000 per room, according to Kidder Mathews research. The new owner plans a comprehensive renovation projected for completion in 2027.

How much hotel investment activity closed in the Seattle market over the past year?

Trailing twelve-month hotel sales volume in greater Seattle totaled $378 million as of Mid-Year 2026, below the three-year average of $435 million (Data source: STR, CoStar, and Kidder Mathews Valuation). Six hotel sales exceeding $5,000,000 closed in the first half of 2026, and annual sales volume has fluctuated significantly in recent years.

What are current hotel capitalization rates in Seattle?

Average hotel capitalization rates in the Seattle market were about 8.8% as of Mid-Year 2026, according to Kidder Mathews research. Pricing has softened with continued relatively high interest rates, keeping sales volume below levels seen prior to 2023.

Which Seattle-area submarket has the highest hotel occupancy?

Among tracked submarkets, South Lake Union posted the highest second-quarter 2026 occupancy at 72.5%, followed by Seattle CBD at 70.7% and SeaTac at 72.3%, according to Kidder Mathews research. North Seattle posted the lowest occupancy among tracked submarkets at 63.6%.

Did the FIFA World Cup boost Seattle hotel demand in 2026?

Yes — Seattle hotel demand increased in June 2026 due to FIFA World Cup matches held in the city, according to Kidder Mathews research. However, the increase was somewhat below expectations and not enough to result in improved year-over-year occupancy or RevPAR performance.

What is the outlook for the Seattle hotel market going forward?

Kidder Mathews expects the Seattle hotel market to slowly improve, with minor increases anticipated in occupancy and ADR. Limited new supply should support performance, though continued weak economic conditions, fewer international travelers, and the uncertain impact of potential tariffs may temper occupancy gains.

Last updated: Mid-Year 2026. Data source: STR, CoStar, and Kidder Mathews Valuation. Compiled by the Kidder Mathews Research Group.

2Q 2026 Seattle Hotel Market: Key Data Points

The Seattle hotel market softened in 2Q 2026 as demand declined modestly from the prior year, resulting in lower occupancy and RevPAR despite continued growth in room rates. Limited new hotel development and a constrained supply pipeline should support future performance, though economic uncertainty, reduced international travel, and elevated interest rates continue to affect occupancy and investment activity. Explore our full Seattle hotel market report for detailed performance trends, development updates, and transaction activity.

• Occupancy Softens Year-Over-Year: Seattle hotel occupancy declined to 68.6% in 2Q 2026, down from 69.7% in 2Q 2025 as travel demand moderated.
• Room Rates Continue to Rise: Average daily room rates (ADR) increased to $182, up from $181 one year earlier, remaining above pre-pandemic levels.
• RevPAR Declines Slightly: Revenue per available room (RevPAR) decreased to $125, compared with $127 in 2Q 2025, reflecting softer occupancy despite higher room rates.
• New Supply Remains Limited: Only 249 hotel rooms are currently under construction across two projects, representing approximately 0.5% of existing market inventory.
• Hotel Sales Volume Below Recent Average: Trailing 12-month hotel transaction volume totaled $378M, below the three-year average of $435M.
• Investment Pricing Adjusts: Average hotel capitalization rates have softened to approximately 8.8%, reflecting continued higher interest rates and changing investment market conditions.

Hotel Performance

Hotel Development

Hotel Transactions

Data as of Mid-Year 2026. Source: STR, CoStar, and Kidder Mathews Valuation. Prepared by the Kidder Mathews Research Group.