- Peachtree, Merritt codeveloping Texas hotel.
- The dual-branded hotel to open in 2029.
- DPR is general contractor, DLR is architect.
PEACHTREE GROUP AND Merritt Development Group are codeveloping a 480-room dual-branded hotel in downtown Austin, Texas. The hotel, combining Hilton Worldwide Holdings' Embassy Suites and Tempo brands, is expected to open in early 2029.
The 30-story hotel will be near the Texas State Capitol, the University of Texas at Austin, Sixth Street and the Red River Cultural District, the companies said in a statement. It will include a two-story restaurant, a rooftop bar and lounge overlooking downtown Austin, an Embassy Suites restaurant and bar, a Tempo café, meeting and event space and a fitness center.
The two brands will share amenities and operating infrastructure while serving different guest segments: Embassy Suites will offer all-suite accommodations and Tempo will target travelers seeking a smaller-footprint, design-focused stay. The project is expected to draw corporate, group, government, education and leisure travelers.
"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," said Greg Friedman, Peachtree CEO and managing principal. "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."
Atlanta-based Peachtree is led by Friedman, Principal and CFO Jatin Desai and Principal Mitul Patel.
DPR Construction is the general contractor, and DLR Group is the architect and interior designer. The development is surrounded by about 14 million square feet of Class A office space.
David Merritt, Merritt Development Group president and owner, said Austin's growth as a corporate, entertainment and tourism destination makes downtown the right location for the project now.
"The location puts the hotel at the center of everything that makes Austin such a compelling destination," he said.
The five-county Austin region has about 2.6 million people and is projected to reach 3.23 million by 2035, according to Opportunity Austin. Infrastructure projects include the $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport. The convention center project is expected to add meeting and exhibit space, while the airport expansion will increase passenger and gate capacity. They said the hotel will benefit from that growth and the resulting demand for hotel rooms.
Separately, Peachtree expanded its Delaware Statutory Trust platform with two acquisitions offering 1031 exchange-eligible investments to accredited investors. The acquisitions bring the total value of its DST offerings to about $525 million.
