We spent a couple of nights in this very new, very nice hotel.
The staff was friendly, the room spacious and quiet and the free breakfast pretty decent. We really appreciated the small touches like no TV in the breakfast room - they played quality jazz on the stereo at reasonable volume.
They even had Tazo tea in the room, and a place to recycle paper.
The free shuttle service was great. Even on the day we left, after checkout time, we were able to get a shuttle downtown, and a ride back so we could pick up our car and not have to pay the exorbitant fees to park.
We didn't get a chance to use any of the other features in the hotel like the free carts (ask the hotel about this) or the free bicycles.
We would stay in this hotel again and will the next time we are in Seattle.

I stayed a few days at the Watertown for a conference. I would definitely stay here again. The location is perfect for the University district, there are a number of cheap restaurants, cafes and stores nearby. The hotel has free bikes you can borrow to move around the area, and Seattle is a bike-friendly (if hilly) city. If you want to go downtown, the hotel has a free shuttle. Staff is friendly and helpful.
The room is not huge but definitely large enough, and quite clean and comfortable. It could use a bit more light and water pressure is not great (though adequate). There is free Internet in the room (a cable is available). I am a light sleeper, but this hotel is very quiet at night, and the beds are comfy. Amenities such as free coffee, teas and herbal teas, cookies and wine tasting in the afternoon make your stay even more pleasant. Breakfast is OK: eggs, bagels, a variety of cereals, juices and pastries. Nothing stellar or homemade, but it gets your day started.

Cute boutique hotel w/ large modern rooms w/ all the little extras. It was much better than our room in downtown, which cost alot more. Free parking is a plus. Would definitely return again and again.

I stayed at the Watertown for 4 days for business. Nice, spacious rooms, comfortable beds and pillows, and I loved the big mirror! The main reason I booked this hotel, though, was the secure underground parking, since I was travelling alone. I felt safe at all times and it helped that I didn't have to walk out in the rain to get to my car! The staff was excellent as well; very friendly and responded promptly to my needs. Breakfast was a nice bonus. I would definately stay here again and recommend it to anyone looking to stay in the University District.