According to a recent report by CBRE, Seattle’s hotel industry is expected to see a strong recovery in the coming years. Despite a slower start in the first quarter, it is projected that Seattle hotels will surpass their 2019 revenue per available room (RevPAR) levels by the second half of 2024.
The increase in hotel occupancy can be attributed to an uptick in tourism and leisure activities like sporting events and concerts. While business travel remains subdued, Puget Sound has been boosted by the cruise industry.
Alan Jutte, Vice President of CBRE’s Hotels Valuation & Advisory group stated that this positive outlook is based on an estimated average daily rate (ADR) growth of 1.4% and a 1% increase in occupancy. RevPAR for Seattle is predicted to rise by 2.4% for 2024, slightly lower than initial projections made earlier this year at around 2.9%. However, with hotel occupancy across Puget Sound expected to reach almost pre-pandemic levels at approximately70%, there are promising signs for continued growth as forecasts show potential increases up until reaching an estimated peak of73.%8in2026.
This report highlights encouraging trends within Seattle’s hospitality sector without mentioning any specific organizations or brands associated with Connect CRE or its affiliates.
