Seattle’s hotel sector continued its post-pandemic rebound in Q1 2025, with market-wide occupancy hitting 70.3% in March, according to a new report from Kidder Mathews.
Demand in the Seattle CBD submarket continues to improve, aided by a surge in leisure travel. With continued growth in demand, a relatively stable supply, and rising room rates, hotel performance could continue to improve steadily.
The report highlighted the overall Seattle hotel market performance as demonstrated by Q1 2025 results, reflecting continued improvement over the prior years since 2020. ADR climbed to $182 in Q1 2025, translating to a significant increase in RevPAR from $30 in Q1 2021 to $128 in Q1 2025. Cap rates have stabilized near 8.7% market-wide.
Three hotel properties were sold recently for more than $5 million, including a 240-room Embassy Suites in Lynnwood and the Red Roof Inn in SeaTac. Additionally, three new hotels are currently under construction, including the Somm Hotel and Spa in Woodinville and a LivAway Suites in Renton.
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