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The headquarters hotel planned near the Oregon Convention Center is one of many either in development or under construction in the Portland-metro area.

Competing hotel developers said at an industry forum Thursday that they support the proposed 600-room Hyatt hotel near the Oregon Convention Center.

Homer Williams, chairman of Williams & Dame, said the hotel could help revitalize the Lloyd District.

鈥淚f they do a good job at the street level, it will be additive鈥� to the neighborhood, he said. 鈥淚f not, it will be an island.鈥�

The Hyatt project has attracted critics, most prominently hotelier Gordon Sondland, who objected to Metro’s role. Metro plans to issue $60 million in bonds to support construction of the $212 million project; they will be repaid by lodgers’ tax revenues.

Sondland and Metro officials announced Friday that they have reached a legal settlement to dismiss pending lawsuits challenging the project, and to avoid future legal action.

The agreement clears the way for construction of the Hyatt Regency to begin later this year. It’s expected to open in 2018.

Kimo Bertram, the San Francisco-based vice president of development for Hyatt, said the project is supported by 鈥渢hree pillars鈥� 鈥� a strong base of corporate business travelers, positive expectations for the Oregon Convention Center and a steady supply of leisure travelers looking for 鈥淧ortland authenticity.鈥�

The comments came at a breakfast hosted by NAIOP, a commercial real estate development association, at the Multnomah Athletic Club.

Minneapolis-based Mortenson Construction is the builder for the headquarters hotel, as the project is known. Mortenson also is developing the AC Hotel Portland at Southwest Third Avenue and Taylor Street, and a 15-story hotel at 619 S.W. 11th Ave.

Nate Gundrum, Mortenson’s director of real estate development, said the company isn’t concerned that the rush of development will exceed demand.

鈥淲e’re not afraid of new supply,鈥� he said.

The Hyatt is only one of many hotel projects slated for construction this year. High occupancy rates and strong revenues are encouraging new development.

Portland hotels enjoyed approximately 80 percent occupancy and $200 average room rates in 2015, exceeding the national averages of 65 percent occupancy and $125 room rates, said Kasia Russell, managing director for HVS Consulting and Valuation in Portland.

Demand was even stronger in summer, when local occupancy rates push up to 95 percent, she said.

While downtown is the hottest market for hotel developers, Washington County is also attracting interest. Russell said she’s tracking 12 projects there that would total 900 rooms.

That wave will be the first new hotel inventory for the southwest suburban county since 2006, Russell said.

鈥淭hat’s where we see all the employment growth and the residential growth, so it makes sense that’s where we see hotels coming online,鈥� she said.

Developers also discussed what they see as a high cost to win approval for Portland projects. Gundrum said it cost $2 million to move forward with AC Hotel Portland, while a similar project in Minneapolis incurred only $800,000 in predevelopment costs.

鈥淭he influence of neighborhood groups and the Design Commission (in Portland) is pretty high,鈥� Gundrum said.

Williams, a prominent developer of the South Waterfront District and the Pearl District, said developing in Portland is worth the price tag.

鈥淚t’s a price most developers are willing to pay,鈥� he said. 鈥淭he bigger issue might be time.鈥�

Hotel development also tends to be more volatile and prone to cyclical downturns than are the residential and commercial sectors, said William Balinbin, vice president of acquisitions at Denver’s Sage Hospitality.

鈥淭he moment there is a disaster somewhere in the world, the moment there is a terrorist attack, we are empty,鈥� he said. 鈥淎nd it hurts.鈥�

Several participants said too few new hotel rooms will come online this year to significantly affect room rates and occupancy. The developers and analysts said the hotels under development won’t change the market dynamics until 2017 or ’18.