While hotels in several large West Coast markets continue to struggle for various reasons, there are signs of hope in the Pacific Northwest.
Speaking on the latest episode of the Hotel News Now podcast, CoStar senior director of hospitality analytics Emmy Hise said there are signs Seattle has "broken through" in a way other markets have not.
"For a while, it was one of those least recovered hotel markets after the pandemic, and I would put into that bucket San Francisco, San Jose and Portland where it just took longer to recover," she said. "Now, Seattle hotel performance is booming. On a 12-month average basis, [average daily rate and revenue per available room] are at peak levels. By the end of the year, occupancy is expected to get above 70% again, and it's topping the charts in terms of growth, whereas the other markets that I mentioned are growing but still struggling and not having the robust hotel improvement that Seattle is showing."
Part of that improvement is a strong return of business travel across the Seattle area, and analysts have tracked an improvement in overall performance with Amazon's edict to return to office. At the same time, the city still enjoys a robust array of leisure demand drivers, said Seattle-based CoStar News reporter Randyl Drummer.
"According to stats from the Downtown Seattle Association, the business group downtown, there's been a gradual increase in foot traffic," he said. "We've had some spending that paired with things like a significant boost in cruise ship travel traffic and tourism. And of course, there's a laundry list of iconic places in Seattle to visit, like Pike Place Market, Lumen Field where the Seahawks play and the Mariners' [T-Mobile Park]."
Drummer said you can't overestimate the power of Amazon's return to office, especially as the company plans to ramp up to five days a week following a transition up to three days a week.
"The return of Amazon has generated an awful lot of ground activity," he said. "It's not anywhere near where it was before the pandemic, but it shows in the business. It contributes both to spending downtown, but also hotel stays. As more companies get back to work, more people will be attending business meetings, and that's only good for downtown Seattle."
For all of HNN's discussion with CoStar's Emmy Hise and Randyl Drummer, listen to the podcast above.