Peachtree JV Breaks Ground on 30-Story Austin Hotel

September 16, 2026

Hotel Austin Development News More Southwest

The dual-branded property is set to open in 2029.

Peachtree Group and co-developer Merritt Development Group have begun construction of a 480-key, dual-branded Embassy Suites by Hilton and Tempo by Hilton property in downtown Austin, Texas.

The 30-story, 336,800-square-foot asset is slated to come online in early 2029.

The hotel will combine Embassy Suites’ all-suite offering with Tempo by Hilton, a lifestyle brand designed for modern travelers. The dual-brand strategy allows hotels to share amenities and operating infrastructure while appealing to a broad range of business, group and leisure travelers.

Amenities will include a two-story restaurant, rooftop bar and lounge, Embassy Suites restaurant, Tempo café and fitness center, along with meeting and event space.

DPR Construction is general contractor and global design firm DLR Group is serving as architect and interior designer for the project at the corner of Fifth and Lavaca streets.

Close to key demand drivers

The property will be surrounded by approximately 14 million square feet of Class A office space and near many of the city’s primary business, leisure and entertainment offerings and demand generators, including the Texas State Capitol, the University of Texas at Austin, Sixth Street and Red River Cultural District.

The region has seen major investments in infrastructure that support the hospitality industry, including the $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport aimed at significantly increasing passenger and gate capacity.

The new convention center, which is slated to open in 2029, is expected to generate approximately $750 million annually, according to Marcus & Millichap’s first-quarter 2026 Austin Hospitality Report. Formula One racing at Austin’s Circuit of The Americas, one of the fastest-growing sports globally, contributes to demand for hotels along with UT athletics, particularly the football program.

As of early 2026, Austin had approximately 51,000 hotel rooms, which was expected to grow to more than 52,600 rooms by the end of the year, according to Visit Austin. The city’s hotel room supply increased 51 percent between 2015 and 2025, with the downtown hotel inventory growing 77 percent over the same period.

1 Hotel Austin, a 252-key hotel in the new 74-story, 2.7 million-square-foot Waterline tower, opened earlier this month. The 13-floor hotel will share space with offices and residences in the tower developed by Lincoln Property Co. and Kairoi Residential.

Growing hospitality portfolio

Last month, Peachtree and Merritt opened the 171-key Residence Inn by Marriott San Antonio Riverwalk, an extended-stay hotel in downtown San Antonio, Texas. The all-suite hotel features studio and one-bedroom units with full kitchens, separate living and working areas. Features include a complimentary breakfast area, full-service Starbucks and 24-hour market that provides grab-and-go snacks, beverages and ready-to-heat meals. Amenities include a fitness center, outdoor fire pit and lounge area, meeting space and additional workspaces.

Peachtree is one of the most active hotel and commercial real estate investors in the U.S. with more than $8 billion in asset value under management. Late last year, the company announced its hotel development portfolio had exceeded $2 billion nationwide. The firm’s largest property to open in 2025 was the 257-key Embassy Suites Beach Resort in Gulf Shores, Ala. The waterfront, eight-story hotel has all-suite guest rooms along with food and beverage options.