My 70 year-old parents have made the Watertown their primary place to stay when they come from out of town to visit our family. While I think it's really classified as a "Business Hotel", it borders on "Boutique". The building is newly constructed with great modern touches. The rooms are well insulated (for sound) and super clean. My folks love the simple breakfast in the lounge - fresh fruit, cereals, etc.. and they offer wine in the evening. The staff bake chocolate chip cookies all afternoon. Free bikes are available as well - you're only two blocks from the Burke Gilman trail. It's definately the best hotel near the UW.
Overall, it's the amenities and little touches that add up at the Watertown. Well worth it.