Peachtree Group and Merritt Development Group have commenced construction on a 480-room dual-branded hotel in downtown Austin, Texas. The project integrates Embassy Suites by Hilton and Tempo by Hilton brands at the corner of Fifth and Lavaca streets.
Project Details and Partnerships
The hotel will rise 30 stories featuring a total of 480 guestrooms combining the two Hilton brands. DPR Construction is appointed as the general contractor, while DLR Group is responsible for the architectural and interior design work. The joint development effort by Peachtree Group and Merritt Development Group marks one of Peachtree’s largest hotel undertakings to date.
Timeline and Amenities
The hotel is slated for
opening in early 2029. Interior plans include a multi-level signature lifestyle restaurant, a rooftop bar and lounge offering expansive views of downtown Austin, dedicated Embassy Suites restaurant and bar, Tempo café, meeting and event spaces, and a fitness center for guests.
Location Context
Situated in central Austin, the hotel is adjacent to approximately 14 million square feet of Class A office space. It stands near prominent landmarks such as the Texas State Capitol, University of Texas at Austin, the Sixth Street entertainment district, and the Red River Cultural District.
Market Growth and Developer Perspectives
Austin’s metropolitan area currently hosts about 2.6 million residents, with projections reaching 3.23
million by 2035. This growth supports expanding demand for hospitality linked to business, convention, and leisure travel. 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 emphasized the dual-brand strategy serves diverse traveler segments by combining Embassy Suites’ full-service suites with Tempo’s lifestyle appeal.
David Merritt, president and owner of Merritt Development Group, remarked on Austin’s status as a corporate, entertainment, and tourism hub. He noted, “The location at Fifth
and Lavaca puts the hotel at the center of everything that makes Austin such a compelling destination.” The partnership reflects confidence in Austin’s long-term expansion.
Hospitality Market and Infrastructure Investments
The hotel complements ongoing regional investments including the $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport aimed at increasing passenger and gate capacity. These developments parallel the city’s significant commercial office base and thriving entertainment districts, fostering sustained demand for hotel accommodations.
