Thursday, October 1, 2026
A hotel company has submitted a proposal to the Port of Olympia to develop a waterfront site at the port peninsula.
Port Community and Economic Development Director Mike Reid updated the Port of Olympia Commission on the proposal at a meeting on Tuesday, Jan. 20.
He said the proposal from Kalyan Hospitality, which owns the DoubleTree Hotel in downtown Olympia, was submitted in response to the port’s solicitation of interest last fall for the 6.5-acre site on Marine Drive.
A solicitation of interest allows companies to propose ideas without the expense and level of detail required under a more formal request for proposals process.
Under the proposal from Kalyan Hospitality, the site would include a 120-room hotel with a restaurant and rooftop bar, along with about 10,000 square feet of meeting and event space. Plans also call for public-facing amenities, such as a plaza, promenade connections and retail space.
It would also include offices for Swantown Marina, which is similar to plans for the Waterfront Center, a building the port had planned for the site.
The center would have housed the marina offices and the port’s administrative office, a plan which the port backed down from after deciding to relocate its administrative offices to the former Dancing Goats Coffee building in Olympia.
Reid said the franchise for the hotel would not be determined until later in the process. He explained the port’s relationship would be with Kalyan Hospitality as the owner and not with which hotel operator ultimately manages the hotel.
Kalyan’s proposed timeline envisions the project starting construction by 2028 and opening in 2030, which Reid noted was realistic for current market conditions.
The developer estimates the project would create between 90 and 110 construction jobs, and 65 to 75 permanent hospitality and service positions once completed.
To move forward with the proposal, Reid recommended entering an exclusive negotiation agreement with Kalyan Hospitality to refine the project concept and conduct due diligence.
He said such agreements typically last about 180 days, during which time the port grants Kalyan Hospitality the exclusive rights to negotiate a potential lease for the site.
Executive Director Alex Smith said any lease agreement resulting from the negotiations would require commission approval.
Most commissioners appeared willing to explore the proposal.
Commissioner Jasmine Vasavada expressed strong enthusiasm, citing the developer’s established presence in Olympia. She also shared the history of the Waterfront Center project with newer commissioners and noted the port was unable to develop the site on its own.
Commissioner Joen Hansen said entering an exclusive negotiation agreement would be a “responsible” move, adding the port has no experience managing a project of such scale.
Commissioner Jerry Toompas said he appreciated the offer but urged caution, raising concerns about the hotel’s long-term impact on the types of businesses it could attract and its effect on land values.
Commissioner Krag Unsoeld was the only commissioner to say he was “less enthusiastic,” noting Kalyan Hospitality is a major business, which could limit opportunities for smaller businesses.
He added the proposed amenities might primarily serve hotel guests. Vasavada said the port could negotiate for those amenities to be more accessible to the public.
Two other groups replied to the port’s solicitation. One is a wellness and spa business expressing interest in becoming a tenant if the development happens.
The other reply came from a group of consultants offering to help the port attract potential developers.
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johnvaneenwyk
Wow! A 120-room hotel on the Port Peninsula? So much for making the peninsula available to the public for walking, birdwatching, picnicking, etc. Now the 6.5 acres will be only for those who can pay a lot to stay in the hotel and eat at the restaurant.
InJamaica, when hotels wanted to build exclusive resorts on the beautiful beaches, the government allowed it with the proviso that Jamaican residents could stay in the hotels for $10 a night. How about an arrangement like that for the residents of Thurston County who are forced to pay taxes to bankroll the Port?
Wednesday, January 28 Report this
BobJacobs
Too bad the article didn't include public opposition to this project.
Why is the Port District pursuing this project at the same time that it is starting a planning process for the whole peninsula? Planning should come first.
Why is the Port District planning to pay the potential developer $50,000 for the option period, when the normal procedure is for the developer to pay the landlord for the option? This is backwards.
Bob Jacobs
Wednesday, January 28 Report this
KentReister
Look at all of those parking spots. It's more pavement than actual usable land. Gross.
Wednesday, January 28 Report this
JulesJames
A non-water-dependent use on the waterfront. This is spot-on why the concept of public ports was created. The Port of Olympia is better losing money than making money this way.
Wednesday, January 28 Report this
Boatyarddog
Planning Obstenance, A Complete Foobar. NO One wants this, planning Incompetence at its best, PORT Commissioners Do Your DAMN Jobs and Move Cargo.
Wednesday, January 28 Report this
northbeachcomm
JAN 26
The Port of Olympia, months ago, gave the TRPC (Thurston Regional Planning Council) around $50,000. to conduct an EIS (Environmental Impact Statement) for the Port peninsula. Now they are thinking about allowing a hotel to be built on this fill dirt of the peninsula? That is crazy. We need to know the long term issues at stake, we need to know how this will effect the dredging of the toxins in Budd Inlet (a Port study now going on that will cost $200 mil??). The Port had said, in the past, that the toxins dredged up in Budd Inlet, would be piled onto the peninsula. How will this effect the proposed hotel? The roads, the infrastructure? As usual, this discussion is backwards. We need TRPC TO DO ITS JOB! STOP JUMPING THE GUN!
Wednesday, January 28 Report this
JnNwmn
Anytime a company has an idea to build on the Port Peninsula, the staff hands out $50,000 of your money for
a study to build the project. This is the second time in 2 months "the staff" has done this. It is time again to
replace the commissioners that vote for these wasteful tax payer expenditures.
Wednesday, January 28 Report this
Porter
It needs a tattoo parlor and an antique store to be truly olympian.
Wednesday, January 28 Report this
chrispc2u
How about if instead we raze the drug, crime and homeless infested dilapidated downtown core filled with tattoo parlors and try attracting retail businesses that people actually want to go to instead of adding more hotels??
Wednesday, January 28 Report this
Snevets
How about a Zipline over the water to what the city is proposing @West Bay?
Wednesday, January 28 Report this
Southsoundguy
A hotel for all the vagrants downtown.
Wednesday, January 28 Report this
FayForward
It is hard to tell from this sketch exactly where this development would be. Hopefully it would not obliterate the North point open area and public parks and walking paths--favorite places in Olympia. North Point is a great venue for outdoor concerts and other large events-- would like to see this expanded. Would also like to see occupancy rates for current hotels and adjacent apartments -- is there documented demand for more?
Wednesday, January 28 Report this
Alex360
Awesome, now get rid of the log yard and develop the peninsula with housing, retail, and lots of public space.
Wednesday, January 28 Report this
Mugwump
This may be an apples and oranges situation but it sure seems like local government spends a vastly disproportionate amount of money on studies and consultants relative to the revenue they may receive from these various projects. All the while citizens are begging for relief from crumbling sidewalks and roads, cars speeding through neighborhood streets, and unhoused neighbors suffering their tragedies on the streets.
I repeat my previous comments regarding the government/vending-machine analogy. We, the tax payers, have dropped our coins into the slot (local government) and made our selection. We eagerly wait for it to drop. If it doesn't drop soon don't be surprised when we start kicking and shaking the machine.
Monday, February 2 Report this