Peachtree Group has initiated construction on a new dual-branded hotel featuring Embassy Suites by Hilton and Tempo by Hilton in downtown Austin, Texas. The 480-room property is scheduled for completion and opening in early 2029, marking a significant expansion of Austin’s hotel capacity.
Location and Development Partners
The hotel is positioned at the corner of Fifth and Lavaca streets in downtown Austin. The 30-story building will combine 480 guestrooms across the two Hilton brands. Peachtree Group is co-developing the project with Merritt Development Group. DPR Construction is appointed as the general contractor, while DLR Group is responsible for architectural and interior design services.
Dual-Brand Strategy and Amenities
The
property integrates Embassy Suites’ full-service all-suite model with Tempo by Hilton, a lifestyle brand targeting modern travelers. Planned amenities include a two-story signature lifestyle restaurant, a rooftop bar and lounge overlooking downtown Austin, an Embassy Suites restaurant and bar, a Tempo café, fitness facilities, and meeting and event spaces.
Austin’s Growth and Infrastructure Investment
Austin’s metropolitan population stands at approximately 2.6 million across a five-county region, with projections estimating growth to 3.23 million by 2035. Public and private investments accompany this growth, including a $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar upgrade to Austin-Bergstrom International Airport to increase passenger
and gate capacity. These factors drive sustained demand for new hospitality developments near key sites such as the Texas State Capitol, University of Texas at Austin, Sixth Street entertainment district, and Red River Cultural District.
Developer Perspectives and Market Positioning
Greg Friedman, CEO and managing principal of Peachtree Group, described the downtown Austin location as “exceptional for a development of this scale,” emphasizing the ability to serve diverse business, group, and leisure travelers through the dual-brand approach. David Merritt, president and owner of Merritt Development Group, cited Austin’s ongoing evolution as a corporate, entertainment, and tourism hub as justification for the project’s timing and location
at Fifth and Lavaca streets.
Peachtree Group Profile
Peachtree Group operates as a vertically integrated investment and asset management firm, focusing on opportunities in dislocated commercial real estate markets. The company manages billions in capital targeting acquisitions, development, and lending, with this hotel project representing one of its major ventures in hospitality development.
