University regents approved an agreement Thursday with the developer Wright Runstad & Co. for a complex at Rainier Square that would include a 15-story hotel.
The existing Rainier Tower would remain on the 10-acre property at Fifth Avenue and University Street, the original site of the university.
The Seattle Daily Journal of Commerce reports the board of regents wants to generate more income from the property.
The complex would include 182 apartments, street-level stores, and parking for 1,200 cars. Construction could start in 2017 and would take about three years.