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October 16, 2025

Portland hotel developers tout economic impact, but market may have limits

Panelists Eggs and Issues Photo / Renee Cordes Robb Atkinson, left, moderated a panel discussion about hotels in Portland with Matt Arrants, Jim Brady and John Schultzel. The discussion was framed around the question, "Seriously, another hotel?"
By Renee Cordes

Debunking the perception that Portland has too many hotels, a trio of local developers touted the industry’s wider economic impact at a public forum on Thursday. 

In 2024 alone, 2.8 million visitors to the greater Portland region spent $1.76 billion on accommodations, dining, transportation and other purchases  — a 12.6% increase from 2023 — according to data presented at a Portland Regional Chamber of Commerce event. 

The same slide showed that the industry supported 20,200 jobs last year and contributed to $1.05 billion in total wages.

Visitor spending is not limited to traditional vacation activities, but also includes Uber rides, restaurant and retail, excursions, gas stations and groceries when travelers are in town on business or for medical appointments, noted John Schultzel, chief growth officer at Portland-based Olympia Hospitality.

“We also spend a lot of money locally as hoteliers,” he said, citing labor and payroll as the largest expense.

Schultzel was joined at the Portland chamber's “Eggs & Issues” breakfast forum by Matt Arrants, a hotel investor, developer and advisor with the Arrants Co; and Jim Brady, co-founder and president of Fathom Cos. whose projects include a planned hotel in an historic building on Monument Square. 

MEMIC's Robb Atkinson, volunteer president of the Portland Community Chamber of Commerce, moderated the discussion. It was framed around the question, "Seriously, another hotel?"

Ripple effect 

Noting that the benefits of visitor spending “ripple all over” the local economy, Brady said that most of the hotels in Portland are developed by and still owned by local owners, including those that pay a fee to be part of a franchise.

“That money stays in the economy as well,” he said.

Offering a regional comparison as measured by average daily room rates and revenue per available room, Arrants noted that Portland is more popular than Portsmouth, N.H., and Burlington, Vt..

Arrants said Burlington is “struggling” amid safety concerns, while Brady noted that market has “plummeted” this year because of fewer Canadian tourists.

Cautious outlook

While hotel supply and demand in Portland have been largely in sync for a long time, Brady offered a cautious outlook of 10 hotel projects that secured approval before the city imposed a moratorium on new hotel development; in June, the moratorium was extended by another six months.

If all 10 projects cross the finish line, Brady said that would mean "dramatic change" and could pose a danger of over-supply. 

Given current construction prices, however, “I think a lot of them will be a bit challenged to get the number to work out,” he said.

slide showing hotel supply and demand in Portland.
Photo / Renee Cordes
Except for a dip during the pandemic, Portland hotel supply and demand have been in sync for several years, according to this slide from Fathom Cos. displayed at Thursday's event.

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