Peachtree Group has begun construction on a 480-room dual-branded hotel combining Embassy Suites by Hilton and Tempo by Hilton at the corner of Fifth and Lavaca streets in downtown Austin. The project is co-developed with Merritt Development Group, with David Merritt as its president, marking one of Peachtree’s largest hotel ventures.
Building Specifications and Timeline
The 30-story hotel will have 480 guestrooms across both Hilton brands. DPR Construction is the general contractor, and DLR Group serves as both architect and interior designer. The hotel is expected to open in early 2029.
Hotel Amenities and Facilities
Upscale amenities include a two-story signature lifestyle restaurant, a rooftop bar and lounge
with views of downtown Austin, Embassy Suites restaurant and bar, Tempo café, meeting and event spaces, and a fitness center. These facilities aim to serve a broad mix of business, group, and leisure travelers.
Strategic Central Downtown Location
The hotel is located in the heart of downtown adjacent to approximately 14 million square feet of Class A office space. Nearby landmarks include the Texas State Capitol, University of Texas at Austin, Sixth Street entertainment district, and Red River Cultural District.
Executive Statements on Austin’s Market Potential
Greg Friedman, CEO and managing principal of Peachtree Group, said, “Austin continues to distinguish itself as one of the country’s most dynamic growth markets,
and we believe this is an exceptional location for a development of this scale.” He added, “Bringing Embassy Suites and Tempo together allows us to serve a broad range of business, group and leisure travelers while creating a differentiated hospitality experience in the heart of downtown.” David Merritt stated, “Austin’s continued evolution as a corporate, entertainment and tourism destination makes this an exciting time to bring a project of this caliber to downtown,” and, “The location at Fifth and Lavaca puts the hotel at the center of everything that makes Austin such a compelling destination. We are pleased to once
again partner with Peachtree to bring this development to life.”
Austin’s Growth Driving Hospitality Demand
The Austin five-county region currently has about 2.6 million residents, projected to reach 3.23 million by 2035. Public and private investments include a $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport.
Hotel Positioning Amid Infrastructure Expansion
The hotel’s downtown location near major landmarks and expansions positions it to benefit from increased air connectivity and enhanced convention capacity. The dual-brand strategy combines Embassy Suites’ full-service all-suite offerings with Tempo by Hilton’s lifestyle design for modern travelers. This approach allows the hotel to share amenities and operational
systems, optimizing market reach in light of limited new hotel supply expected in coming years.
