A luxury SLS hotel will be part of a new $400 million downtown office tower in downtown Seattle, the first property in the area for the boutique hotel brand.
SBE Entertainment Group LLC, which owns the SLS brand, will run the 184-room hotel on the tower’s second through 15th floors, Chairman and Chief Executive Officer Sam Nazarian said. The Los Angeles-based company also operates Hyde nightclubs and the Katsuya and Cleo restaurant brands.
Nazarian is betting on continued growth in Seattle’s hospitality market, which has outperformed the rest of the country. Occupancy in the city last year climbed to 71 percent from 69 percent in 2011, and average nightly rates increased 5 percent to $120.39, according to Hendersonville, Tennessee-based research company STR. That compares with a 61 percent occupancy rate and $106.10 average room rate nationally.
Construction will start on the downtown building by Oct. 1, said Kevin Daniels, president of Seattle-based Daniels Real Estate, which is developing the 43-story tower with Stockbridge Capital Group, based in San Francisco. The building is scheduled for completion in mid-2016.
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