Seattle, WA
Seattle Hotels See Boost from Business Travel, but Limited Supply Growth, Says New CBRE Forecast
May 29, 2025
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Sr Corp Communications Manager
CBRE forecasts that Seattle revenue per available room (RevPAR) will grow modestly in 2025, driven by the continued outperformance of urban locations benefiting from increased group and business travel.
CBRE forecasts a 2.2% increase in RevPAR in Seattle for 2025, with occupancy and average daily rate rising by 0.5% and 1.7%, respectively. This represents slightly softer growth than anticipated in CBRE’s February forecast, which projected 2.7% RevPAR growth, -0.1% decrease in occupancy and 2.8% increase in ADR.
Looking ahead, CBRE projects RevPAR growth to reach 3.9% in 2026. New leisure projects and numerous sporting events will help drive demand.
“Business travel increased this year, and the rehabilitation of the waterfront and Pike Place Market enhancements have boosted demand. High construction and financing costs have put a damper on new supply, but Seattle’s forthcoming sporting events will lift the market,” said Alan Jutte, vice president with CBRE’s Hotels Valuation & Advisory group.
CBRE’s forecast is predicated on an expected 1.4% increase in GDP growth this year (down from 2.4% annual growth as of the February forecast) and a 2.9% average inflation rate for 2025 (40 bps higher than anticipated in February). While the economy is expected to grow more slowly, growth will be strong enough to support the lodging industry’s performance.
Hotel supply in Seattle is expected to increase 0.6% in 2025, less than half of the industry’s historical average. Meanwhile, demand is forecasted to increase 1.1% this year. A drop in demand or sharper-than-expected spike in construction costs could cause supply growth to decelerate further.
CBRE has included 11 new leisure-oriented markets in its latest forecast, including Boulder and Colorado ski markets, California wine country, the Florida Panhandle, and Utah national parks. These additions reflect recent shifts in travel trends and provide insights into emerging opportunities.
* * *The May 2025 edition of Hotel Horizons for the U.S. lodging industry, 65 major markets, the six hotel chain scales and six location types can be purchased by visiting: https://pip.cbrehotels.com/hotelhorizons. CBRE’s baseline forecasts do not contemplate an international war or a pervasive recession. CBRE also produces forecasts based on upside and downside scenarios.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, digital infrastructure services); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.