Finances

THE STATE OF THE CONVENTION CENTER, FISCAL YEAR 2024

Operating Activity
The Convention Center experienced strong financial growth in 2024, marking a return to more normalized operations following the major expansion with the opening of the Summit building in early 2023.

Total operating revenues increased by 25% from 2023 to 2024, driven by a growing number of events—rising from 160 to 200—and the continued ramp-up of activity at the fully operational Summit building. Key revenue streams such as building rentals, food services, parking, and facility services all saw meaningful increases. Operating lease revenues also grew by 6%, bolstered by new tenant occupancy at Summit, though partially offset by a tenant loss at the Arch building.

This follows a dramatic 77% revenue jump from 2022 to 2023, primarily due to the initial launch of Summit. As both facilities now operate at full capacity, revenue growth is stabilizing at a strong, sustainable pace.

Operating expenses rose 6% from 2023 to 2024, reflecting higher event activity and associated costs such as staffing, food service, and facility upkeep. Additional drivers included the full-year depreciation of Summit and an increased $10.6 million contribution to Visit Seattle, supported by stronger lodging tax collections.

The prior year (2022 to 2023) saw a much larger 130% increase in expenses due to Summit’s launch, the restart of full operations, and significant staffing increases—salaries and wages alone jumped 78%.

Despite rising costs, the net operating loss improved by $3.8 million in 2024 thanks to continued revenue gains outpacing expense growth.

Lodging Tax Revenue
Lodging tax revenues strengthened in 2024, with City of Seattle collections up 12% to $93.5 million and extended King County taxes rising 13% to $6.4 million. With two active buildings, the District is better positioned to smooth seasonal volatility by strategically scheduling events, which helps support stable average daily room rates (ADR) and occupancy throughout the year.

Nonoperating Activity
Nonoperating income declined in 2024, with investment income dropping 23% due to lower cash reserves following Summit-related spending and debt payments. Additionally, the District did not receive legislative aid in 2024, contributing to a $9.7 million decrease in nonoperating revenues. In contrast, 2022 had seen a one-time $44 million gain from asset disposals.

Nonoperating expenses decreased by $2.5 million due to lower interest payments and reduced asset write-offs. Losses from asset disposals tied to the Summit project dropped from $8.5 million in 2023 to $400,000 in 2024.

Strategic Outlook
With Summit and Arch fully operational, the District is entering a phase of steady growth. Continued recovery in tourism, strategic scheduling of events across both venues, and stable lodging tax revenues will support long-term financial sustainability.

Erwin B. Vidallon
Chief Financial & Technology Officer
 


WSCC PFD Financials

These financial reports are available for download and review in a PDF format. You may request older documents by contacting us.

The Washington State Convention Center PFD (dba Seattle Convention Center) has retained a registered municipal advisor to provide advice on proposals from financial services firms concerning the issuance of municipal securities. SCC will rely on (meaning seek and consider) the advice, analysis, and perspective of its independent registered municipal advisor.

SCC engages Public Financial Management, Inc (PFM) as its municipal advisor in its debt management program. PFM has represented to SCC that it is an independent registered municipal advisor within the meaning of the SEC Municipal Advisor Rule. Please contact PFM for a current list of employees.

By publicly posting the following written disclosure, SCC intends that market participants receive and it for purposes of the independent registered municipal advisor exemption to the SEC Municipal Advisor Rule.