Peachtree Group has initiated construction on a 480-room dual-branded hotel combining Embassy Suites by Hilton and Tempo by Hilton in downtown Austin, Texas. The project, co-developed with Merritt Development Group, is among Peachtree’s largest hotel developments and is slated for opening in early 2029.
Located at the intersection of Fifth and Lavaca streets, the 30-story hotel is designed by global architecture and interior firm DLR Group and constructed by DPR Construction as the general contractor. The joint development effort positions the property in central Austin’s core.
The hotel will include a two-story signature lifestyle restaurant, a rooftop bar and lounge
overlooking downtown Austin, an Embassy Suites restaurant and bar, a Tempo café, extensive meeting and event spaces, and a fitness center. This array of amenities caters to a wide spectrum of guest needs within a single building.
The site is situated amidst approximately 14 million square feet of Class A office space and near key Austin destinations such as the Texas State Capitol, the University of Texas at Austin, Sixth Street entertainment district, and the Red River Cultural District. The location benefits from ongoing regional infrastructure expansions, including a $1.6 billion redevelopment of the Austin Convention Center and a major
expansion of Austin-Bergstrom International Airport, supporting anticipated demand growth.
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. 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, president and owner of Merritt Development Group, added, “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.”
The Austin metropolitan area currently houses approximately 2.6 million residents, with projections estimating a population of 3.23 million by 2035 across the five-county region. This projected growth is driving significant public and private investment in hospitality infrastructure to meet demand.
The dual-branded concept combines Embassy Suites’ all-suite full-service model with Tempo by Hilton’s
lifestyle brand focused on modern travelers. This strategy aims to attract varied segments including business, group, and leisure travelers, while sharing amenities and operational infrastructure to maximize efficiency and guest experience.
Peachtree Group recognizes the hotel project as a major investment aligned with Austin’s expanding corporate, entertainment, and tourism sectors and reflects confidence in the city’s long-term growth trajectory.
