The milestone surpassed the previous high of $122 million set in July 2023, when Major League Baseball’s All-Star Week and two Taylor Swift concerts drew visitors.
SEATTLE — Downtown Seattle hotels capped a record-breaking July, but operators warn that behind the surge in business, they continue to face steep operational challenges.
Hotels citywide generated more than $126 million in revenue in July — the highest monthly total on record, according to Visit Seattle. Downtown properties sold nearly 420,000 rooms with an occupancy rate of 89%.
“July was a record-breaking month for us,” said Michael Woody, chief strategy officer for Visit Seattle. “To see it starting to move in the right direction is so important.”
The milestone surpassed the previous high of $122 million set in July 2023, when Major League Baseball’s All-Star Week and two Taylor Swift concerts drew visitors. This year’s numbers were fueled by more than 20 sporting events, eight concerts, 50-plus cruise ship sailings and other large gatherings.
“We really had a great opportunity to welcome a lot of people here to Seattle to enjoy the things that make this place special,” Woody said.
For longtime hoteliers, the strong season is encouraging but complicated.
“We’re all grateful that we have so much business in the city right now,” said Craig Schafer, owner of Hotel Ändra, who has run Seattle properties for more than 25 years. “There was a time when we didn’t feel like that was going to happen.”
But Schafer said record revenues mask the challenges of rising costs, staffing shortages, and a drop in international travel.
“Most people would say, hey, you’re busy, you have records. Again, love it, but it’s a very challenging environment,” he said.
Visit Seattle noted the strong summer was expected, given the seasonal spike.
“We celebrate the records set while acknowledging operating challenges impacting the hospitality community nationwide,” the organization said in a statement to KING 5.
Those challenges echo broader concerns raised by the Seattle Southside Regional Tourism Authority. CEO Mark Everton said in June that King County hotels have sold about 65% of their rooms this year at an average daily rate of $167, with both figures slightly down from a year ago.
“In the case of some of the San Francisco Bay Area’s largest hotels, they’ve either closed or handed their keys back to their lenders simply because they can’t afford to refinance,” Everton said. “King County hotels may be facing some similar situation in the near future.” Visit Seattle told KING 5 that they’re unaware of any imminent closures.
Despite the busy cruise season and strong passenger traffic at Sea-Tac Airport, Everton said forecasts point to “minimal growth in occupancy” while operating costs and inflation continue to weigh on the industry.
“Operating costs continue to grow and with inflation and low international travel, hotels are going struggle,” he said Wednesday.
