Downtown Seattle’s Hotel Seattle Listed for Sale with Redevelopment Flexibility

Hotel Seattle, a historic downtown property currently closed, has been listed for sale with completed upgrades and options for restoration, redevelopment, or conversion.

Property Overview

Hotel Seattle, located at 315 Seneca Street in downtown Seattle, is being offered for sale by CBRE Hotels. The property, which has been closed since the COVID-19 pandemic, is available as a fee-simple interest, unencumbered by brand or management agreements. The building has undergone demolition and cleanup, with completed improvements including a new roof, exterior facade work, a new elevator, and upgrades to electrical and plumbing systems. The property does not require a seismic upgrade.

Location and Surroundings

The hotel is situated in Seattle’s central business district, near major demand drivers, including the newly expanded Convention Center, the Stadium District, and the city’s waterfront, which is scheduled for completion in the second quarter of 2025. The location is within walking distance of Amazon’s global headquarters, the Financial District, and a range of cultural and entertainment venues. The property is also proximate to Pioneer Square, a historic neighborhood known for its tech, tourism, and nightlife sectors. Nearby major employers include Amazon, F5 Networks, Nordstrom, Weyerhaeuser, Google, Meta, and Apple.

Development and Investment Options

The property is fully entitled and zoned for mixed-use, allowing for hotel, residential, or commercial redevelopment. The offering includes flexibility for restoration of the existing hotel or conversion to alternative uses. The open-concept lobby and basement level are suitable for various design plans. The upper floors can be converted into a boutique hotel, and there is an opportunity to restore the building’s historic facade while upgrading mechanical systems.

Buyers may benefit from historic tax credits, which can provide financial advantages over a ten-year period. Additionally, the sale includes unutilized air rights above the property, which can be sold separately.

Operational Status and Market Context

Hotel Seattle is currently closed and non-operational. The property is being marketed as an opportunity for full renovation and restoration, retaining the building’s shell. There is potential to revive a legacy hotel brand or introduce a new hospitality concept in a high-barrier-to-entry urban market.

The Seattle hospitality market is showing signs of recovery, with revenue per available room (RevPAR) and occupancy rates trending upward. The property’s location near transit hubs, including light rail and ferry terminals, further supports its accessibility and potential demand.

Financial and Transactional Details

The sale represents a fee-simple interest in the property, offered free of any existing brand or management encumbrances. The building is fully entitled for restoration, and the completed upgrades reduce the scope of required initial investment. Buyers may also access key money commitments from potential franchise partners. The availability of historic tax credits and the option to sell unused air rights are additional financial considerations.

Inquire at CBRE.