Seattle Hotel Development Pipeline Outlook
- MMCG
- Jun 29
- 20 min read
Seattle’s hotel development pipeline is active yet measured as the market emerges from a period of stagnation. After several years of minimal new supply, developers are once again pursuing projects across the Seattle metro, with a focus on select-service and extended-stay hotels and strategic clustering in high-demand submarkets. This report, from the perspective of MMCG’s hotel feasibility and advisory team, provides a comprehensive narrative on Seattle’s hospitality pipeline – examining project scale, class segmentation, amenities, geographic distribution, brand trends, and the broader market context. Hotel developers and lenders will find an insight-rich overview of what’s under construction, what’s on the drawing board, and how these projects align with historical trends and upcoming economic drivers.
Current Pipeline Overview: From Construction to Planning
Seattle’s hotel pipeline consists of several dozen projects at various stages, from under construction to final planningand early proposed phases. In total, roughly 4,500 new hotel rooms are in the pipeline for the metro – equivalent to about 8–9% of the current room inventory. Importantly, a significant portion of these rooms are already moving forward. As of mid-2025, approximately 750 rooms are under construction across five projects, which represents about a 1.5% increase in existing supply. The majority of these are slated to open by 2025, indicating a near-term bump in new supply. An additional ~1,600 rooms are in final planning stages (permitting and pre-construction), with the remainder (~1,900 rooms) in early proposed stages – the latter being less certain to materialize.
Notably, Seattle’s pipeline is somewhat further along than many markets in terms of execution. About 20% of pipeline rooms are already under construction, a higher share than the U.S. average. This suggests that developers in Seattle have moved more projects to the build phase, reflecting confidence in the market’s recovery. Conversely, the proportion in merely conceptual/proposed stage is moderate. The pipeline spans nearly all chain scales, from economy to luxury, but midscale and upscale developments dominate, consistent with national trends favoring limited-service growth. High-end luxury projects are relatively scarce in the pipeline, and Seattle also stands out for a larger share of independent (unbranded) projects compared to other markets.
To put the pipeline into perspective, if all projects under construction and final planning open as expected, Seattle would add roughly 2,300–2,400 rooms by 2026 – about a 4.5% increase in the total stock. This is a manageable expansionspread over the next couple of years. By contrast, in the late 2010s the city saw a far more rapid influx; for example, supply grew 5.2% in 2018 and 5.7% in 2019 (over 5,000 new rooms added in just two years) while demand struggled to keep pace (just 2.8–4.0% growth in occupied rooms). That wave, crowned by the opening of the 1,260-room Hyatt Regency Seattle in 2018, tested the market’s absorption capacity. Today’s pipeline is more conservative – an acknowledgement of a changed landscape post-2020. From 2020 through 2024, net new supply was minimal (~0–1% annually) as the pandemic halted projects and even saw some permanent closures. Now, with demand recovering, the current pipeline aims to right-size new supply. Projected additions of ~1.6–1.8% per year in 2025–2026 should roughly align with expected demand growth, helping Seattle avoid the oversupply concerns of the last cycle.
Table 1 – Seattle Hotel Development Pipeline Summary (Mid-2025)
Stage | Projects | Rooms | % of Current Inventory | Expected Delivery |
Under Construction | 5 | 749 | 1.5% | Mostly 2025 |
Final Planning | ~13 | ~1,600 | ~3% | 2025–2026 |
Proposed (Early) | ~16 | ~1,900 | ~4% | 2026+ (potential/uncertain) |
Total Pipeline | ~34 | ~4,250 | ~8–9% | Span 2025 through late 2020s |
Source: MMCG analysis of Seattle hospitality pipeline data and historical inventory (2025).
As shown above, the near-term pipeline (under construction + final planning) is on track to expand Seattle’s hotel supply by roughly 4–5% by 2026. The longer-term pipeline (including proposed projects) could add another ~4% beyond that, although it is likely that not all early-stage proposals will proceed, especially if market conditions shift. For now, however, developer sentiment in Seattle appears optimistic enough that one in five planned rooms is already being built – a strong commitment that underscores expectations of future demand growth.
Clustering by Submarket: Where Are New Hotels Rising?
Geographically, Seattle’s hotel development is heavily concentrated in a few key submarkets, mirroring where existing demand (and supply) is highest. The Seattle CBD (downtown) and the Bellevue/Eastside together account for the bulk of the pipeline. Our analysis shows nearly 50% of all pipeline rooms are located in Downtown Seattle alone, with another ~23% in the Bellevue/Eastside area. This is not surprising, as those two submarkets also hold the largest shares of current hotel inventory – about 35% and 19% of the region’s rooms, respectively. Developers are doubling down on these core urban nodes, which benefit from diversified demand (corporate, leisure, and group) and high average rates.
Seattle CBD: Downtown Seattle has the largest number of projects. Several are smaller or mid-sized properties filling in around the urban core, and a couple are marquee developments. For example, a Tempo by Hilton (300 rooms, 23 stories) is proposed in the downtown area – marking Hilton’s new lifestyle brand’s entry into the market. The Langham, Seattle is another high-profile project in the CBD pipeline; at 187 rooms in a 42-story mixed-use tower, it is the only true luxury hotel in final planning locally. The Langham will occupy the lower 15 floors of its tower (residences above) and uniquely plans to preserve the historic façade of a 1916 landmark building as part of its design. On the other end of the spectrum, downtown’s pipeline also includes some boutique and niche concepts – notably the tiny Triangle Hotel in Pioneer Square (a historic flatiron-shaped building being converted into a 2-room micro-hotel), and a proposed “Pickleball Hotel” with just 22 rooms that would capitalize on the nation’s pickleball craze (this project’s name suggests on-site courts or related amenities). These out-of-the-box concepts underscore the creativity in Seattle’s development scene, even as mainstream select-service hotels dominate the count.
Bellevue and Eastside: The Eastside (Bellevue, Redmond, and surrounding cities in King County’s tech corridor) constitutes the second-largest pipeline cluster. This area already has nearly 20% of regional rooms and is seeing new upscale offerings. A major recent addition was the InterContinental Bellevue at The Avenue, which opened in mid-2024 with 208 rooms as the Eastside’s largest luxury property. In the pipeline proper, two projects stand out. First, the Snoqualmie Casino Resort’s hotel (210 rooms, 14 floors) is under construction east of Bellevue – it is the centerpiece of a $400 million expansion by the Snoqualmie Tribe to transform their casino into a full-service resort destination. Second is The SOMM Hotel & Spa (164 rooms) in Woodinville wine country, an Autograph Collection boutique resort that will feature extensive wellness amenities (true to its name “SOMM,” wine and spa experiences are expected). Additionally, a Silver Cloud Bellevue (144 rooms) is in final planning – a new property by a local boutique chain, aiming to capture corporate demand in Bellevue’s downtown. The Eastside’s pipeline skews toward upscale and luxury independent offerings, reflecting the area’s affluent corporate clientele (Big Tech firms and high-income residents). These projects are generally smaller scale than downtown (aside from Snoqualmie’s resort) – often around 140–180 rooms and mid-rise, with an emphasis on premium amenities like spas, event space, and high-end dining.
South Seattle/Kent-Renton Corridor: A smaller but notable cluster of development is occurring south of Seattle, in the Renton, Kent, and Auburn areas (the Seattle Southend). This submarket – traditionally midscale, serving corporate parks, Boeing facilities, and the Seattle–Tacoma (SeaTac) airport vicinity – is seeing an uptick in economy and extended-stay projects. The most immediate addition is a LivAway Suites in Renton (126 rooms), an economy extended-stay hotel currently under construction. LivAway is a new entrant brand targeting value-oriented long-term travelers, and its Renton project signals confidence in sustained demand from the industrial and manufacturing sectors nearby. Further down the pipeline, three proposed economy hotels (roughly 80–120 rooms each) are slated around Auburn, Kent, and Federal Way – including two WoodSpring Suites (a Choice Hotels economy extended-stay brand) and a Tru by Hilton. These are low-rise projects (typically 4–5 stories) meant to serve blue-collar corporate demand and budget travelers in the southern Seattle metro. It’s worth noting that Auburn just saw the opening of a 401-room hotel tower at Muckleshoot Casino in early 2024, a major development by the Muckleshoot Tribe that brought a full-service, upper-upscale hotel (with a rooftop fine-dining restaurant, spa, and pool) to that area. With that project delivered – the largest hotel to open in the metro since 2018 – no other hotels over 300 rooms are under construction now. The South Seattle pipeline thus focuses on smaller-scale, niche products to gradually build up lodging supply in step with local demand.
Seattle Airport (SeaTac) Area: Surprisingly, the immediate SeaTac Airport submarket has a modest pipeline, given the airport’s significance. There are a few proposed limited-service hotels near the airport – for example, an Avid Hotel (56 rooms) and a Candlewood Suites (51 rooms) are on the drawing board, alongside a larger Home2 Suites by Hilton (118 rooms) extended-stay project. In total, around 225 rooms are proposed around SeaTac. This relatively small pipeline reflects both the already robust hotel supply around the airport and the cautious approach of developers in an area where rates are lower. Still, with SeaTac’s ongoing expansion (more on that in later sections), we may see these projects progress to construction to accommodate future passenger growth.
North Seattle & Everett: In the northern reaches of the metro (North Seattle, Lynnwood, Everett), a handful of projects are planned, mostly to support suburban office clusters and Paine Field/Boeing-related demand. About 300 rooms in final planning are split across three Marriott select-service hotels north of Seattle – a Residence Inn, a TownePlace Suites, and a SpringHill Suites – each roughly 80–130 rooms, targeting extended stays for corporate travelers around the Everett aerospace corridor. Additionally, a small independent project (58-room Castile Studios Hotel) is proposed in the University District/Lynnwood area, likely aiming at a mix of university visitors and tech offices. These northern projects are all moderate in scale (5–8 stories) and fit the pattern of suburban, car-oriented hotels with all-suite layouts, rather than big full-service developments.
Across the metro, this geographic breakdown reveals a clear pattern: new development follows demand. Downtown Seattle and Bellevue (with high RevPARs and occupancy gains) are magnets for new supply. In fact, over the past year Seattle’s urban core submarkets have led performance – Seattle CBD averaged 72% occupancy and the highest ADR ($227), while Bellevue/Eastside hit ~67% occupancy with ADR just over $200. These healthy metrics justify upscale projects. Meanwhile, faster RevPAR growth has been recorded in the more affordable submarkets (Kent/Renton RevPAR +9.9% year-over-year, leading all areas) as they recover from pandemic lows. This rebound likely emboldened developers to add new lower-cost hotels in those areas, betting on continued improvement.
In summary, Seattle’s pipeline is spatially focused in the urban core and key commercial hubs, with selective forays into suburbs where specific demand drivers (casinos, airports, corporate parks) warrant new hotels. Each submarket’s new projects tend to cater to the prevailing demand profile: luxury and full-service in high-end markets, and limited-service or extended-stay in the secondary nodes.
What’s Being Built: Scale, Class, and Amenities
Beyond location, the composition of Seattle’s pipeline by product type is telling. The emphasis is clearly on smaller-scale, upscale or midscale hotels, often with an extended-stay or select-service orientation. There are exceptions at the top end, but the days of building massive convention hotels in Seattle appear to be on pause for now.
Chain Scale Segmentation: Using the industry chain-scale classifications, over half of the pipeline rooms fall into the Upscale and Upper Midscale segments (which include brands like Hilton Garden Inn, Courtyard, Hyatt Place, Residence Inn, etc.). This reflects a preference for select-service hotels that are cheaper to build and operate, and which align with the “barbell” demand Seattle sees – strong in high-end corporate travel and budget-conscious segments, but a bit softer in the traditional full-service middle. Approximately 23% of pipeline rooms are in the Luxury or Upper Upscale class (primarily the Langham and a few Autograph/soft-brand boutiques), while roughly another 23% are in the Economy or Midscale class (economy extended-stays like WoodSpring and midscale brands like Tru). This leaves the majority (over 50%) in that broad Upscale category – which in Seattle’s context often means lifestyle-oriented limited-service hotels and extended-stay properties that command mid-to-high room rates without full-service overhead.
In line with this, extended-stay formats are a major theme. A large portion of the pipeline hotels are all-suites or long-stay oriented, whether flagged as Residence Inn, Home2 Suites, Element, TownePlace, or the new economy entrant LivAway. The CoStar data indicates that the final planning pipeline is “heavily weighted toward extended stay formats”. Developers are clearly responding to sustained demand for long-term lodging: tech project teams, relocating employees, medical travelers, and even leisure travelers on multi-night trips. Extended-stay hotels tend to achieve higher occupancy and can be more recession-resistant, traits attractive to lenders. Seattle’s high housing costs also mean some people use these hotels for interim housing. Nearly every submarket has at least one extended-stay project in the works – from the Residence Inn in downtown’s First Hill medical district, to multiple WoodSpring Suites in the suburbs. This focus should improve the market’s ability to absorb new supply since extended-stay hotels operate somewhat outside the traditional nightly-room-rate competition (many guests book by the week or month).
Average Project Scale: The pipeline projects are, for the most part, moderate in size. The average new hotel under construction has ~150 rooms, and even those in planning hover around 100–200 rooms each. This is a notable shift from the last development boom when a few mega-projects (300+ rooms) dominated. As mentioned, only one project exceeding 300 rooms has recently opened (the Muckleshoot Casino hotel at 401 rooms) and none of that scale are currently being built. The largest in the pipeline, the proposed Hilton Tempo (300 rooms), is still a bit smaller than those prior cycle behemoths. Building in the 100–250 room range spreads risk and is more financeable in the current environment. It also allows targeting of specific niches – for instance, a 120-room boutique can differentiate itself more easily than a 400-room generic tower.
That said, tower projects have not disappeared. The luxury Langham will rise 42 stories, and the Tempo is planned for 23 stories – both downtown high-rises that incorporate hotels into mixed-use skyscrapers. We see a trend of hotels occupying the lower floors with other uses (residences or offices) above. This mixed-use approach, exemplified by the Langham’s configuration within a tower with residential units above, helps make high-rise hotels financially viable by sharing land costs and tapping multiple revenue streams. Conversely, in suburban areas, projects remain low- to mid-rise (typically 4–8 stories) given cheaper land and different economics.
Brands & Operators: Another telling aspect is the diversity of brands entering or expanding in Seattle. The pipeline features major global brands making first or early appearances in the region – for example, Tempo by Hilton will be a new flag for Seattle, and Langham is a renowned luxury brand marking its Seattle debut. Marriott International’s stable is well represented (with multiple Residence Inns, TownePlace Suites, AC Hotel, Autograph Collection, and an Element under construction). Hilton’s family is also prominent (Tempo, Home2 Suites, Tru, and Hampton/Homewood expansions in proposals). IHG has a couple of Candlewood Suites and an Avid hotel lined up. Boutique and soft brands are leveraged in projects like The SOMM (Marriott’s Autograph) and the planned conversion of Pan Pacific to 1 Hotel (an eco-luxury brand) in 2025. Notably, a number of projects are independent or unique concepts without a major flag – e.g., the “Pickleball Hotel” and the “5th Ave Boutique Hotel” in the pipeline, as well as the adaptive reuse Populus Seattlein Pioneer Square. The latter, Populus (120 rooms), is part of a historic redevelopment called the Railspur in the downtown Pioneer Square area. Such independent projects often aim to differentiate through design and local character, and Seattle’s market seems amenable to them (perhaps due to a strong base of corporate-negotiated business that isn’t strictly tied to loyalty programs).
From an operator perspective, most of the branded projects will be franchised hotels operated by third-party management companies or owner-operators – a common model in the select-service space. We also see local players and new companies: for instance, Silver Cloud Hotels (a local Seattle company) is developing its new Bellevue property, and West77 Partners (a regional developer) is behind the LivAway Suites project. The tribal projects (Snoqualmie and the recently opened Muckleshoot hotel) are being developed and likely operated by the tribes (sometimes with management assistance from experienced firms). Overall, while the Marriott, Hilton, and IHG logos will adorn many new properties, the range of parent companies and stakeholders is broad – from local entrepreneurs to international owners. This diversity in ownership and branding strategies suggests an advisory point: developers are carefully aligning product and flag with submarket needs, rather than defaulting to any one approach. For example, rather than another big-box Marriott in downtown, we see a luxury Langham and a lifestyle Hilton; in the suburbs, rather than full-service Hiltons, we see economy extended-stays which are more fitting for those areas.
Amenities and Differentiators: Despite many pipeline hotels being limited-service in nature, developers are incorporating notable amenities to stand out. Rooftop venues are a trend – the newly opened Muckleshoot hotel’s rooftop fine-dining restaurant is a highlight in Auburn, and we expect the downtown high-rises (Langham, Tempo) to feature rooftop bars or restaurants capitalizing on skyline and waterfront views. Wellness facilities are another focus: the Bellevue Health & Wellness Resort (a proposed independent project ~157 rooms) as its name implies would center on spa and health amenities; The SOMM Autograph in Woodinville is emphasizing its spa and likely wine-centric wellness experiences. Meeting and event space is being included selectively – for instance, the InterContinental Bellevue that opened in 2024 offers 12,000 sq. ft. of event space, showing that in high-end projects developers haven’t given up on group business. Many of the mid-market extended-stay hotels forgo large meeting rooms but compensate with things like outdoor patios, sports courts, or extended lobby workspaces to cater to long-stay guests. One unique amenity angle is, of course, the aforementioned pickleball-themed hotel, which presumably will incorporate courts or clinics for guests – a playful example of targeting a niche passion (and reflecting Seattle’s enthusiasm for the sport). Additionally, integration with broader attractions is evident: the Snoqualmie hotel plugs into a casino resort (gaming, entertainment), and Populus Seattle ties into an arts-centric redevelopment in a historic district. These added-value amenities and contextual integrations suggest that experience is key – new hotels are not just adding room count, they’re aiming to offer something distinctive to capture demand in a competitive market.
Outlook: Market Context and Strategic Considerations
Seattle’s hospitality pipeline is unfolding against a backdrop of improving fundamentals and major upcoming events/investments that could boost demand. Here we provide forward-looking commentary on how the pipeline aligns with – and may be influenced by – several key market drivers:
Convention Center Expansion: Seattle doubled its convention capacity with the completion of the Washington State Convention Center (WSCC) “Summit” expansion in 2023. This added hundreds of thousands of square feet of meeting space, enabling the city to host larger conventions (or multiple events simultaneously). This is a significant demand generator for hotels, particularly in the downtown core. We expect the expanded convention calendar to support higher mid-week occupancy for CBD hotels and to improve group rates in coming years. Notably, many new rooms under construction or recently opened are in walking distance to the convention center – e.g., the Hyatt Regency (opened 2018) was a pre-expansion supply boost, and upcoming deliveries like the 1520 5th Ave Hotel (246 rooms, final planning) will further bolster the inventory of convention-oriented hotels. The pipeline’s timing (with a bulk of projects delivering by 2025) aligns well with the ramp-up of Summit’s event schedule. MMCG’s historical analytics show that Seattle’s demand growth hit 5% year-over-year in 2024 as convention and corporate travel rebounded, outpacing the minimal supply growth and allowing occupancy to recover. With Summit online, we anticipate continued demand growth that can absorb the new supply – a positive signal to lenders worried about occupancy dilution. Developers, for their part, appear to be anticipating this: the concentration of new upscale select-service hotels downtown can serve convention attendees at slightly lower price-points than the existing big-box HQ hotels, potentially filling a niche for more affordable (or overflow) convention housing.
Waterfront Redevelopment: The Seattle waterfront is undergoing a dramatic makeover following the removal of the Alaskan Way Viaduct. A new pedestrian-friendly waterfront park, upgraded piers, an expanded aquarium, and other attractions are coming on line between 2025 and 2026. This will greatly enhance Seattle’s appeal as a leisure destination, particularly for cruise visitors and tourists. We expect waterfront and downtown leisure demand to climb in the late 2020s as the area becomes a vibrant gathering space. The hotel pipeline, while not explicitly tied to the waterfront project, will benefit from it – especially the boutique and independent properties in downtown and Pioneer Square. For instance, Populus Seattle in Pioneer Square is well positioned to capitalize on a reinvigorated waterfront nearby. The improved public realm might also spur additional hotel proposals (e.g. on the periphery of downtown or in the Seattle Center/Belltown area) as developers see the waterfront boosting tourism. From a strategic standpoint, those considering new projects might target sites near the waterfront to leverage this city investment. Existing hotels are already anticipating higher foot traffic and revenue once the redevelopment completes.
Sea-Tac Airport Expansion: Seattle-Tacoma International Airport (SEA) is one of the nation’s busiest and is projected to continue growing. A new International Arrivals Facility opened in 2022, and further projects (like a potential new terminal, infrastructure upgrades, and possibly a second regional airport in the longer term) are in discussion. More immediately, Sea-Tac is expanding gate capacity and pursuing more international routes, which will funnel additional travelers into Seattle. The pipeline’s modest growth around the airport (only ~225 rooms proposed currently) could actually be insufficient if passenger volumes jump significantly. We anticipate new hotel proposals near Sea-Tac in coming years, especially in the limited-service and select-service categories, as the airport’s expansion plans materialize. The current proposed projects (Home2 Suites, Avid, Candlewood) are likely to proceed to construction as demand from air travelers and airline crews increases. Developers and investors looking at the airport submarket should monitor the Port of Seattle’s expansion timeline closely – there may be an opportunity for well-positioned mid-scale hotels (or another full-service hotel adjacent to the airport, akin to the existing onsite Hilton) to capture future demand. Additionally, improved airport connectivity (such as light rail extensions) could make nearby suburban nodes attractive for hotel development to serve budget-conscious flyers.
FIFA World Cup 2026: Seattle is slated as one of the host cities for the FIFA World Cup in summer 2026. This global event will bring an influx of international visitors, media, and teams for the duration of the tournament. While it’s a one-time demand surge, it can be a catalyst for infrastructure improvements and provides a short-term boom for hotels. We expect Seattle’s hotel occupancy to spike during the event, and savvy operators will leverage the opportunity for premium pricing. In terms of development, the World Cup has a tight timeline for any new hotel to open – projects under construction now will be online by 2026, but new proposals at this point likely won’t deliver before the event. Thus, the current pipeline will be the primary beneficiary of FIFA 2026. Some developers have cited the World Cup as a reason to push for a 2025 or early 2026 opening, hoping to hit that demand window. However, from a feasibility standpoint, we caution against overbuilding for a single event. Historical analytics show that cities often experience a post-event dip. That said, the World Cup will put Seattle on the world stage, potentially yielding long-term tourism gains (through destination marketing exposure). The takeaway for stakeholders is to capitalize on 2026 with existing projects (ensuring they are operational by then if possible), but to underwrite any new deals on sustained demand drivers beyond that summer.
Other Economic Drivers: Seattle’s economy – anchored by tech (Amazon, Microsoft), aerospace (Boeing), life sciences, and a growing fintech sector – remains strong, though not without headwinds (e.g. tech layoffs in 2023–24). On balance, the region’s industries continue to attract business travel and relocations. The return-to-office trend, if it intensifies, could further boost corporate travel to Seattle. Additionally, the opening of Climate Pledge Arena (2021) and the success of Seattle’s sports teams draw event visitors (NHL’s Kraken, NFL’s 2026 likely World Cup matches, etc.). The cruise industry at the Port of Seattle is rebounding strongly as well, which supports summer hotel demand. All these factors contribute to a healthy outlook for room night absorption. Our MMCG historical data indicates Seattle’s demand (occupied room nights) jumped nearly 28% in 2022 and 5% in 2023 as the recovery took hold, and while that pace has normalized, the market is on track to exceed pre-pandemic demand levels by 2025. As long as the local economy stays on a growth trajectory, the current pipeline should be absorbed without significant stress on occupancy rates. We are watching interest rates and financing conditionsas well – some proposed projects could be delayed or canceled if financing costs remain high, which ironically would further limit new supply and help existing hotels. From a lender’s viewpoint, the risk of overbuilding in Seattle appears limited at present; the pipeline is sizable but not excessive relative to the market’s historical growth.
Conclusion: A Strategic Assessment for Developers and Lenders
Seattle’s hospitality pipeline in 2025 reflects a market in recovery and transition. Developers are strategically targeting segments and locations that align with where they see the greatest opportunity: extended-stay and select-service hotels in areas of growing demand, punctuated by a few high-end projects in prime locations. The pipeline is broad-based (covering most chain scales) but not over-weighted in any single massive project, which should help the market absorb new rooms more smoothly.
For hotel developers, the key takeaways include:
Pipeline Composition – The heavy tilt toward Upscale and extended-stay products suggests these segments offer the best risk-reward in Seattle currently. New entrants in the luxury space (Langham, 1 Hotel) indicate there is still room at the top, but such projects are rare and require unique value propositions (e.g., iconic locations or mixed-use synergies). Meanwhile, the success of recently opened upscale hotels on the Eastside and the strong recovery of mid-market submarkets signal that select-service in good locations is a sound bet. Developers should differentiate their projects with targeted amenities (rooftop experiences, wellness, etc.) and local integration, as the newest hotels are doing, to compete in an increasingly experience-driven market.
Geographical Strategy – The concentration in downtown and Bellevue underscores the primacy of those areas; however, it also means competition there will increase. Some savvy developers are looking at the “edge” submarkets (Renton, Everett, Lynnwood) to build where the pipeline is thinner. These smaller markets can provide outsized performance if there’s unmet demand (for example, the lack of any true full-service hotel in Auburn was remedied by the new Muckleshoot Casino hotel, instantly capturing casino patrons and business travelers who previously had few options). Thus, there is an argument for pursuing projects in underserved submarkets – but with careful feasibility analysis to ensure demand (the pipeline data shows only selective moves in that direction so far).
For lenders and investors, the outlook is cautiously optimistic. Hotel trading activity in Seattle has remained resilient, with nearly $498 million in hotel sales in the past year, above the three-year average – a sign that investors still see value in this market. The development pipeline is active but not reckless in scale, and is backed by real demand drivers (convention expansion, tech corridor growth, etc.). From a financing perspective, the prevalence of national flags and experienced sponsors (including established local firms and tribes) in the pipeline should give some comfort – these projects are being led by groups with track records and/or brand support. Of course, lenders will still underwrite conservatively given higher interest rates; projects will need solid feasibility studies (demand projections, competitive analyses), which MMCG is well positioned to provide.
It will be important to monitor performance metrics as new hotels open. If occupancy or ADR growth falters, that could be a warning of potential oversupply or economic softening. However, at this juncture, all signs point to Seattle being able to absorb the new rooms on the horizon. The pipeline through 2026 is roughly on par with anticipated demand growth and far below the frenetic build-out seen pre-2020. Additionally, with virtually no projects scheduled beyond 2026 as of now, there may even be a period of supply lull after the current batch delivers – which could tighten the market and benefit existing properties.
In conclusion, Seattle’s hotel development pipeline represents a strategic, analytics-backed expansion of capacity, closely tied to where and how demand is expanding. The focus on extended-stay and upscale select-service reflects lessons learned from the pandemic and evolving traveler preferences. Geographic clustering in Seattle’s CBD and Eastside leverages the region’s strongest markets, while selective projects in peripheral areas target emerging demand pools. Historical context shows the current pipeline is modest compared to past expansions, suggesting that the market is not heading for a glut barring an unforeseen shock. With significant events like a re-energized convention circuit, a transformed waterfront, and the World Cup on the horizon, Seattle’s hospitality sector is gearing up for a new cycle of growth. Developers and lenders who align with these trends – balancing ambition with due diligence – will find Seattle to be a landscape of promising opportunities in the coming years.
June 30, 2025 by a Collective of authors at MMCG Invest, LLC, Hotel feasibility study consultant
Sources:
Seattle Convention Center (Dec 19, 2022 press release). “Seattle Convention Center Announces Opening Celebrations of Summit for January 25, 2023.” Describes the $2.0 billion Summit building expansion (573,770 sq. ft. added) that doubled the SCC’s capacity, opening Jan 2023. Source: Seattle Convention Center. Link
City of Seattle Office of the Waterfront (2023). “Waterfront Seattle – Program Overview.” Official overview of the $806 million Waterfront Seattle redevelopment program (2019–2025), creating 20 acres of new parks/public space, a shoreline promenade, rebuilt piers, and improved connections between downtown and Elliott Bay. Source: City of Seattle, Office of the Waterfront & Civic Projects. Link
Port of Seattle – SEA Airport News (Jan 28, 2025). “SEA Airport Completes Pandemic Recovery with Record 2024 Volumes.” Port of Seattle press release announcing 52.64 million passengers at SEA in 2024 (a new record, +3% vs 2023, +2% vs 2019) and highlighting nearly $5 billion in ongoing “Upgrade SEA” capital projects (new Intl. Arrivals Facility, terminal improvements, etc.) slated through 2025. Link
FOX 13 News (Seattle) – Apr 23, 2024. “Seattle expects 750K visitors for 2026 World Cup games.” Report by Jake Wiederrich, citing the Seattle Sports Commission’s estimates from a “Region Ready” planning summit. Confirms Seattle will host 6 World Cup matches and projects ~750,000 visitors in the region during the event (exceeding Seattle’s population). Link
Visit Seattle – Feb 7, 2024 Press Release. “Visit Seattle Announces Preliminary $929 Million Economic Impact Projection for FIFA World Cup 26™ Seattle.” The official DMO (Visit Seattle) projects that the six 2026 World Cup matches in Seattle will generate at least $929 million for King County (direct + indirect impact), including $90–100M in tax revenue, and support ~20,000 jobs. Link
Langham Hospitality Group / Luxury Travel Advisor – Sep 12, 2022. “The Langham, Seattle Hotel & Residences to Open in 2026.” Announcement of The Langham, Seattle – a 187-room luxury hotel with branded residences in a 42-story tower (preserving the 1916 Terminal Sales Annex façade). Slated to open in 2026. Source: Langham Hospitality Group; Luxury Travel Advisor. Link
Hilton Corporate News (May 17, 2021). “Hilton Lifestyle Category… 11 New Hotel Signings Around the World.”Press release detailing new Hilton lifestyle hotel developments, including Tempo by Hilton Seattle Downtown (300 rooms, 23 floors) – located in Seattle’s Denny Triangle, near Amazon HQ and the convention center, originally slated for 2024 opening. Link
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