As the sun dips below the Bellevue cityscape, picture yourself basking in a rooftop pool, skyscrapers glowing in the twilight. Imagine the thrill of plunging into a cold pool after luxuriating in a sauna in the state-of-the-art wellness center. This is the vision Bellevue-based Silver Cloud Inns & Hotels is looking to turn into reality in the Eastside city.
Silver Cloud’s CEO Jim Korbein recently revealed an ambitious blueprint for an urban retreat in the heart of Bellevue. The ten-story hotel promises a lavish lodging experience with approximately 150 rooms and a rooftop oasis and wellness sanctuary. This new venture, located at 200 108th St. NE, previously home to Luther Burbank Savings, marks a return to Bellevue for Silver Cloud. According to a report in the Puget Sound Business Journal, their plans are set to add to the city’s hospitality offering and contribute to Bellevue’s tourism industry.
Silver Cloud purchased the half-acre site a decade ago for $7.1 million. Now, it is ready to spend an estimated $60 million to deliver on its vision.
“Three years ago, we had three hotels here. Now we don’t have any. That’s why we’re building this brand new one,” Korbein said in the report. “We’re really bullish on the market with everything else going on [in Bellevue].”
With construction set to kick off in early 2025, Silver Cloud’s return marks an exciting milestone for the company, making this the 18th property in its portfolio. One of Silver Cloud’s previous ventures in downtown Bellevue has since been transformed into a shelter for unhoused women and families, showcasing the company’s dedication to community welfare. Additionally, the company had a property in the Overlake neighborhood of Redmond that it sold.
After recovering from the coronavirus pandemic’s impact, hotel demand in and near Seattle has nearly returned to pre-pandemic levels, with overall occupancy near 67 percent, according to a recent Kidder Mathews report. The market has seen gradual improvement, with occupancy rates rising from 42 percent in the first half of 2021, to 60.5 percent in the same period in 2022 and 66.8 percent in 2023’s first half. Even though certain downtown Seattle hotels are still struggling due to low office occupancy and reduced business travel, many suburban hotels have bounced back, even exceeding pre-pandemic occupancies. With a stable supply and growth in demand, led by factors like the completion of the convention center expansion, a rise in cruise ship visitors, and Seattle hosting the 2026 FIFA World Cup, steady growth across the industry is projected into the near to mid-term.
The first half of 2023 witnessed 10 sales over $5 million in the Seattle region hotel market, excluding those purchased for demolition or conversion. While transaction volume remains relatively steady, capitalization rates (averaging about 8.7 percent) have risen in response to increased interest rates, Kidder Mathews states. Currently, six hotels are under construction, from the 120-room Hotel Westland in Pioneer Square to the 253-room Nuovo Studios in South Lake Union. This will result in a modest supply increase in Seattle and its eastern suburbs by 2024 or 2025.