Peachtree Group commenced construction on September 15, 2026, of a 30-story, 480-room dual-branded hotel in downtown Austin. The new development combines Embassy Suites by Hilton and Tempo by Hilton brands at the corner of Fifth and Lavaca streets and is expected to open in early 2029.
Development partners, design and amenities
Peachtree Group is co-developing the project with Merritt Development Group. DPR Construction acts as the general contractor, while DLR Group is the architect and interior designer. The hotel will feature amenities such as a 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.
The site is surrounded by approximately 14 million square feet of Class A office space and is close to key landmarks including the Texas State Capitol, University of Texas at Austin, Sixth Street entertainment district, and the Red River Cultural District.
Company statements on Austin’s growth and hotel strategy
Greg Friedman, CEO and managing principal of Peachtree Group, emphasized Austin’s dynamic growth, stating, “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 that combining Embassy Suites and Tempo
by Hilton allows the project to serve diverse business, group, and leisure travelers while delivering a differentiated hospitality experience in downtown Austin.
David Merritt, president and owner of Merritt Development Group, highlighted the city’s evolution, saying, “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.” Merritt noted the location’s centrality to Austin’s attractions and expressed satisfaction in partnering again with Peachtree Group on the development.
Austin market context and infrastructure investments
The five-county Austin region currently has about 2.6 million residents, with projections reaching 3.23 million by 2035. This population growth
is fueling demand for expanded hospitality options. Public and private sector investments include a $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar upgrade to Austin-Bergstrom International Airport, enhancing passenger and gate capacity to accommodate increasing traffic.
These infrastructure projects aim to support corporate, convention, government, education, and leisure travelers, strengthening Austin’s long-term hospitality demand.
Traveler experience and location advantages
The planned hotel will offer guests access to multiple restaurants, a rooftop bar, fitness center, and extensive meeting spaces. Its downtown Austin location situates travelers near major business, government, education, and entertainment districts. Increased air connectivity and expanded convention capacity position
the hotel to benefit from Austin’s continuous growth.
According to Peachtree Group, the dual-brand model leverages shared amenities to efficiently serve varied guest segments including business and leisure travelers.
