What areas are best for hotels in Seattle? Worst? (I'm seeing Seattle for 1st time- would like to stay near downtown/Needle area.)

There are many nice hotels in the Downtown commercial district. Most are business/convention hotels and priced accordingly. Some good prices can be found at Roosevelt or Paramount. If price is less of an issue, the boutique hotels are very nice, Inn at the Market, Alexis. There are mainly lower end motels nearer to the needle, Travelodge, Best Western sorts. I kind of like the Lake Union area, farther from the center of town, but only 1-2 miles and a quick bus or cab ride and less than a mile from the needle. There's are smaller Marriott property there that's fine. A really cool place is this B&B that's entirely on some boats moored on Lake Union. There are really no areas near Downtown I would call the worst, except the the south end of Downtown near Safeco Field has very few lodgings.

I love the Silver Cloud Hotel on Lake Union. The rooms are large and free breakfast and happy hour are included. They will shuttle you to wherever. There are restaurants within walking distance also.

I would simply bid on a 4-star hotel in downtown Seattle using Priceline.com. Look at www.biddingfortravel.com to see recent results of PL bids, and for valuable guidance on how to bid effectively. Many 4-stars (Sheraton, Hyatt, Westin, etc.) being obtained for $75-$90 most nights, or around half off the sticker. Note parking is extra and runs around $20 a day at the big downtown hotels.

If you want the newest and reportedly quite nice place, check out the new Marriott hotel on the waterfront across from the cruise ship terminal. Close to the Pike Market, waterfront activities (duh) and a quick streetcar ride from Pioneer Square and/or the International District.

We stayed in Downtown Seattle at the Hotel MONACO- it was FABULOUS!!
Would definitely go back -- 4 ****

Most definitely the Hotel Monaco. Great location, beautiful hotel. Not sure what price range you are looking at, but on the higher end there is The Edgewater, Marriott (brand new), The W Hotel, Grand Hyatt, The Alexis and The Sorrento. All of these are downtown and within walking distance or very short cab ride to shopping and the Space Needle. If you need info on lower priced hotels or any other Seattle info let me know. I've lived here for a while now.