Peachtree Group and Merritt Development Group began construction in September 2026 on a 480-room dual-branded hotel featuring Embassy Suites by Hilton and Tempo by Hilton in downtown Austin, Texas. The project is located at the corner of Fifth and Lavaca streets and is planned to open in early 2029.
The 30-story hotel is one of Peachtree Group’s largest developments to date. DPR Construction is acting as general contractor, while DLR Group serves as the architect and interior designer. Peachtree Group, a vertically integrated investment and asset management firm, is co-developing alongside Merritt Development Group, led by president and owner David
Merritt.
The hotel will feature a roughly two-story signature lifestyle restaurant, a rooftop bar and lounge overlooking downtown Austin, an Embassy Suites restaurant and bar, a Tempo café, meeting and event spaces, and a fitness center.
Situated in downtown Austin’s core, the hotel neighbors approximately 14 million square feet of Class A office space. It is near key landmarks including the Texas State Capitol, the University of Texas at Austin, and entertainment districts such as Sixth Street and the Red River Cultural District.
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. This is a significant investment in Austin and reflects our conviction in the long-term growth of the city.”
David Merritt, president and owner of Merritt Development Group, said, “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. 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 regional population of approximately 2.6 million as of 2026 is projected to grow to 3.23 million by 2035. This population growth supports expanding economic and hospitality demand. Infrastructure investments include the $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport.
The hotel’s location near major demand generators such as
government offices, universities, and entertainment districts, coupled with limited expected new hotel supply, positions the property to capitalize on Austin’s ongoing growth and increased convention and air travel capacity.
Upon completion, the hotel will provide additional accommodations in downtown Austin with multiple dining options, meeting facilities, and fitness amenities aimed at business, group, and leisure travelers.
