
Seattle Council and Mayor are looking to open more hotels in Belltown, to help their local businesses and raise city revenues. (photo from trip advisor)
Six weeks ago I pointed out that Renton had lost 22% of our hotel rooms for travel use as they were converted to emergency shelter use for City of Seattle’s homeless residents, while leaving the Red Lion boarded up and uninhabitable. This number would hit 29% if the Kennydale Econolodge gets converted similarly. I explained the loss of hotel space was hurting Renton’s economy and our ability to financially recover from the pandemic.
Meanwhile, the City of Seattle is emphasising the vital commercial importance of their own hotels for travelers, which they recognize are critical to help their small businesses recover while generate lodging tax to promote tourism.
A few weeks ago the Seattle City Council began talking about getting more hotels open in the city, particularly in Belletown.
Per KOMO news:
According to city data, hotel occupancy rates downtown exceeded 90% this summer, which is the highest of any city in the nation. The same study reports occupancy rates are expected to beat pre-pandemic levels in 2024. The city said it feels, with these latest numbers, more hotel capacity is needed.
“Yes, please,” said Jason Morganstern, the general manager and owner of Hatch Cantina in Belltown. Morganstern said he and his two business partners took a chance on opening Hatch Cantina 16 months ago, and while it has had its challenges, between inflation, crime and fewer people working downtown, they got some good traction over the summer. But he’d like to see more hotel rooms. He insists more hotels mean more people who will come to Belltown.
“Hotels are the lifeblood of Belltown,” Morganstern said. “Go to any restaurant around here, there is a 40-to-50% increase in sales during tourist season.”
Yesterday, Mayor Bruce Harrell discussed the importance of hotel lodging tax, which he acknowledges is vital to the city. He proposes increasing the rate from a flat $4 per night to 2.3% to enhance city marketing and maintenance revenues.
Per KOMO news:
“(It) is just another step toward our downtown activation plan,” Harrell said in a morning press conference at the Seattle Convention Center Summit Building downtown. Harrell said the extra money will, in his mind, bring more people to the city to spend money which goes back into the general fund for services and maintenance.
While no agency appears to be comprehensively tracking hotel-to-shelter conversion rates and voucher use in King County (King County Regional Homelessness Authority only knew about one-out-of-three in Renton), I’ve estimated King County’s and Seattle’s overall hotel-conversion-to-shelter space at around 4 percent.
While Seattle works to quickly build it’s hotel revenues and room space above pre-pandemic levels, these same Seattle officials seem fine letting Renton’s revenues and room counts drop 23-29% . It’s time for all Renton council members to say “enough”, and insist on more regional fairness. And King County should rebuild our boarded-up Red Lion into a proper hotel, restaurant, and convention center again– to anchor our Renton Village shopping and dining district the way it did in 2019 before the County leased it.

Renton’s former Red Lion hotel is locked in a lease with King County, and boarded up. Even the boards used do not meet Renton city code.
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