Peachtree Group has launched construction on a 480-room dual-branded Embassy Suites by Hilton and Tempo by Hilton hotel in downtown Austin, Texas. The 30-story building, positioned at the intersection of Fifth and Lavaca streets, marks one of the firm’s largest hotel projects. Peachtree is partnering with Merritt Development Group in this venture, with DPR Construction appointed as the general contractor and DLR Group handling architectural and interior design duties. The hotel is scheduled to open in early 2029.
Hotel Features and Brand Strategy
The new development will deliver 480 guestrooms distributed between the Embassy Suites and Tempo by Hilton brands. Embassy Suites will offer a
full-service all-suite lodging experience, while Tempo by Hilton introduces a lifestyle brand aimed at contemporary travelers. The dual-brand arrangement allows both hotel entities to utilize shared amenities and operational resources. Amenities will include a two-story signature lifestyle restaurant, a rooftop bar and lounge with panoramic views of downtown Austin, an Embassy Suites restaurant and bar, a Tempo café, meeting and event facilities, and a fitness center.
Strategic Location amid Austin Landmarks and Office Space
The hotel site is located centrally in downtown Austin, immediately surrounded by roughly 14 million square feet of Class A office space. Proximity to key city landmarks such as the Texas State Capitol, University
of Texas at Austin, Sixth Street entertainment district, and the Red River Cultural District positions the hotel to attract business, group, and leisure visitors. This strategic location situates the hotel within Austin’s main corporate and cultural hubs.
Officials Highlight Austin’s Growth and Project Significance
Greg Friedman, CEO and managing principal of Peachtree Group, described Austin as one of the nation’s most dynamic growth markets and identified the site as exceptional for a project of this scale. He emphasized that combining Embassy Suites and Tempo brands accommodates a wide range of traveler needs while reflecting commitment to the city’s expansion. David Merritt, president and owner of Merritt Development
Group, cited Austin’s development as a corporate, entertainment, and tourism destination as motivation for the project, highlighting the location’s centrality to the city’s appeal.
Austin’s Population Growth and Infrastructure Investments
The five-county Austin metropolitan region currently houses approximately 2.6 million residents, with projections by Opportunity Austin expecting growth to 3.23 million by 2035. This population increase drives demand for hospitality infrastructure. Significant developments include a $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport, which together aim to increase event capacity and air travel connections essential to supporting long-term growth in business and leisure travel.
Traveler Amenities and Market Positioning
The hotel
is designed to cater to diverse traveler segments through upscale dining and entertainment amenities, meeting and event spaces, and fitness facilities. The dual-brand approach between Embassy Suites and Tempo by Hilton facilitates serving business, group, and leisure visitors with different service preferences while optimizing shared operational infrastructure. The development is strategically positioned to benefit from limited new hotel supply forecasts and the enhancement of Austin’s travel and convention resources.
