The State Hotel sits on the corner of Second and Pike, overlooking Seattle’s Pike Place Market and the waterfront, and just minutes away from Lumen Field. With six FIFA World Cup matches coming to Seattle this summer, it seems like the kind of downtown hotel that would fill up with people attending the games.
But that’s not the case. Bookings for June, when the first four games are scheduled to be played in Seattle, are slow. In fact, occupancy for the month is running 7% below where it was last year, according to Anne Johnson, the hotel’s general manager.
Johnson calls it “frustrating.”
“I did expect our occupancy to be a bit higher than it is right now,” she said.
What Johnson is seeing is part of a larger trend playing out across the U.S.
According to a report released in April by the American Hotel and Lodging Association (AHLA), around 80% of hotel operators in World Cup host cities, including Seattle, say bookings are tracking below expectations.
Kansas City, which is hosting six matches, and Los Angeles, which will be the site of eight, also report June and July bookings below their usual rate.
The report blames “visa barriers and broader geopolitical concerns (that) are significantly suppressing international demand.”
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It also points a finger at FIFA, which early on booked large blocks of rooms at hotels in host cities to reserve space for sponsors, players, and team families. Those early bookings raised room prices and created a false sense of high demand.
FIFA released about 70% of their room blocks across those host cities, with only three months left before the first matches, according to the report.
KUOW reached out to FIFA for comment but received no response.
International travelers have a number of reasons to be skeptical about traveling to the U.S., according to McKenzie McMillan, managing partner at The Travel Group in Vancouver.
The current war in Iran is causing U.S. fuel prices to increase, airline ticket prices are high, and there are worries about increased border and travel document scrutiny, McMillan explained.
“Unfortunately this World Cup is happening at a time of global upheaval, so that’s definitely working against each one of these cities and their hotels,” he said.
McMillan said he has seen few Canadian customers booking trips to the U.S. for the World Cup due to ongoing political tensions between the two countries, and fears of being stopped by immigration authorities.
At the State Hotel, Johnson said the drop in international bookings is worrisome.
“[International travelers] do stay longer. They often will stay more days… and they will spend more money,” Johnson said.
The only exception is Australian travelers who are coming to Seattle for the U.S. vs. Australia match on June 19.
Australians in particular are “great travelers,” Johnson said, as they usually stay for around two weeks, and tend to visit various parts of Washington state, like the Olympic Peninsula and nearby islands.
Hoping to attract more travelers, some hotels in host cities, including the State Hotel, have altered their cancellation policies and pricing packages.
According to Johnson, the hotel initially had a non-refundable or 30-day cancellation policy. Now, especially surrounding the match days, the hotel is offering a 14-day cancellation policy to give potential visitors greater flexibility.
The hotel also recently released a package catered toward people visiting Seattle for the World Cup, called “Stay For the Win,” which includes a 2 p.m. checkout for guests enjoying late-night World Cup festivities, and a game-day sports kit.
“It’s working. It’s definitely, you know, moving the needle. We’re definitely seeing more interest, which is great,” Johnson said.
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McMillan said he has seen hotel prices going down in many markets, but that might be more enticing to domestic rather than international travelers.
Despite current less-than-anticipated hotel bookings, Johnson said she still has hope.
“What we’re hearing from FIFA and from folks that have been in markets in prior tournaments, is often, soccer fans do book last minute, and we do hope that is still the case,” she said. ”We’re really excited about just the energy that’s gonna be in the city. It still will be a fun time for people that are coming to Seattle.”
