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Market Report

Northwest Hospitality Investment Forecast

2022 Outlook

Ski Resorts and National Parks Underpin Hospitality Demand in the Northwest

Secondary and tertiary markets drive recovery. Entering 2022, ADR is only down 2.6 percent from the region's 2019 rate. Smaller markets in Montana and Idaho flourished, due to the popularity of their ski resorts and national parks, with each state's occupancy and revenue metrics surpassing their 2019 measures entering this year. Additionally, over 5 million people visited Wyoming's state parks over the past year, lifting statewide ADR and RevPAR above pre-pandemic levels in 2021. Larger metros in the region, like Seattle and Portland, are recovering as well, although at a more moderate pace. Subdued group, corporate and international travel has slowed the recovery in these markets. Moving forward, the reopening of the Canadian border should bolster international visits, while the return of events at convention centers may provide a boost to group travel. With only 4,100 rooms slated to deliver across the Northwest this year, hotel demand is set to outpace supply, lifting the average daily rate above the region's pre-pandemic mark by year-end.
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