Seda Hotels was established in 2012 as one of the hotel brands of Ayala Land Hotels and Resorts, which is a subsidiary of Ayala Land, one of the companies owned by the Ayala Corporation of billionaire entrepreneurs Jaime and Fernando Zobel de Ayala. It was meant to be urban lifestyle hotel chain catering to business travelers and upper income visitors but located near Ayala Land's chain of shopping malls, Ayala Malls.

The hotel was originally called Kukun. Ayala Land had originally preferred the name Cocoon, but settled for the stylised Kukun as the former had already been taken by another Manila boutique hotel.The name of the hotel comes from the Tagalog word for silk. All of its hotels were designed by Filipino architect Conrad Onglao.

The first Seda Hotel opened in December 2012 at the Bonifacio Global City (BGC), a central business district. The 179-room hotel is located close to Ayala Mall's high-end shopping centers such as Bonifacio High Street, Serendra and Market! Market!.

In January 2013, the hotel brand was renamed from Kukun to Seda.