**Seattle Hotel Market Sees Continued Recovery Amid Travel Boom**
Seattle’s hotel sector continued its post-pandemic rebound in the first quarter of 2025, with market-wide occupancy reaching 70.3% in March, according to a new report from Kidder Mathews.
Demand in the Seattle Central Business District (CBD) continues to show strong improvement, buoyed by a surge in leisure travel. With this growing demand, a relatively stable hotel supply, and rising room rates, the outlook for continued performance improvement in the market remains positive.
The report highlights solid progress in the overall Seattle hotel market since the pandemic downturn. Average daily rates (ADR) reached $182 in Q1 2025, marking a significant gain in revenue per available room (RevPAR), which climbed from $30 in Q1 2021 to $128 in Q1 2025. Capitalization rates have also stabilized at approximately 8.7% on a market-wide basis.
Recent transactional activity includes three hotel properties sold for over $5 million, among them a 240-room Embassy Suites in Lynnwood and the Red Roof Inn in SeaTac. In addition, three new hotels are currently under construction, including the Somm Hotel and Spa in Woodinville and a LivAway Suites in Renton.
As travel demand continues to rebound, Seattle’s hospitality sector appears on track for sustained growth.
