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October 19, 2006 Kauri, Ariel to build a hotel with housing
Another project that combines a hotel and housing is planned for downtown, but unlike its counterparts, this one will not be marketed as a luxury living spot. The Hyatt Place Seattle at Denny Way and Highway 99 will be the brand's first West Coast location. The developer, 6th and Denny LLC, is a joint venture between Kauri Investments, Ariel Development and partner Gary Fulcum. It will have 158 hotel suites and 56 residential units, either condos or apartments. The hotel will have a self-registration kiosk, a den and free access to public computers. Rooms will have flat-panel TVs and free Wi-Fi. The housing units were designed as condos, but they may be developed as apartments instead, said Kent Angier, Kauri president and CEO. He said the possible switch to apartments reflects neighborhood changes from nearby projects such as the proposed Bill & Melinda Gates Foundation headquarters. Given a choice, Angier said he would prefer apartments. ?It might be to our advantage to hold on to them and expand the hotel in the future,? he said. ?We may not decide until we're halfway through the project. The market will tell us which is a better way to go.? Angier said Hyatt Place Seattle is unique because of its target audience. Unlike other hotel/condo buildings in the Seattle area, the Hyatt Place Seattle will be more limited service as opposed to a luxury hotel. The difference will also be reflected in pricing. Angier said monthly rents for apartments would be around $1,500. The price if the units are condos would be $500 per square foot compared with luxury condo prices of $1,500 per square foot. Angier also pointed out a difference in the building's design. Unlike hotels with condos stacked above, Hyatt Place will have two buildings, each with separate entries and hallways. The hotel will be eight stories and the residential building will be six. The exteriors of both will be connected, said Angier. Both sections were designed by Johnson Braund Design Group of Seattle. A contractor has not been chosen. This is the first hotel/residence project Kauri Investments has taken on, although Angier said there will be more in its future. ?We wanted to be in the hotel business and the residential portion, be they condos or apartments, as a way to reduce your cost basis on the hotel portion of the building, which insulates you a little bit in terms of market fluctuations,? he said. InterCoastal Hospitality will manage the hotel under a long-term management contract. InterCoastal and its affiliates own and operate 46 hotels nationwide under the Hyatt, Marriott and Hilton brands. Hyatt Place is a division of the Select Hotel Group, subsidiary of Global Hyatt. It caters to business and leisure travelers.
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