Seattle-Tacoma Hospitality Market Report

Tapering border crossings weigh on demand. Following a 5 percent year-over-year increase in demand in 2024, Seattle recorded a 1.2 percent decline last year, largely driven by softer Canadian visitation. Border crossings by passenger vehicles from Canada into Washington fell 24 percent through the first 10 months of 2025 compared with the same period a year earlier. If political tensions persist, cross-border travel from Canada will likely stay subdued, limiting a full recovery in international visitation. In the near term, however, Downtown and pockets around Lumen Field are set to see a performance boost in late June and early July as the metro plans to host six FIFA World Cup matches. Longer term, the metro is poised to benefit from a rapidly declining construction pipeline. Select service maintains the strongest position among hotels after recording the smallest decline in occupancy last year. Occupancy in that class is also expected to increase in 2026, while other segments will likely decline.