I too am directionally challenged, so you have my total sympathy.

One possibility for a hotel is the Silver Cloud Inn in the University District. It's right near the Burke Gilman trail (which, going south, will get you to Knot's favorite LBS, Recycled Cycles, and going north to the brewery and Marymoor Park, the ride that Kit has been on).
http://www.scinns.com/09home.htm

Will be sightseeing with Bruno so not riding, but some of the rest of you guys may want to respond to X re a ride.