The Daily Dig
Peachtree Group has started construction on a 480-room dual-branded hotel combining Embassy Suites by Hilton and Tempo by Hilton in downtown Austin. DPR Construction is serving as general contractor on the 30-story tower.
The site sits at the corner of Fifth and Lavaca streets, in the heart of downtown Austin.
Two Brands, One Job Site
Peachtree and Merritt Development Group are co-developing the project. DLR Group is handling architecture and interior design. Putting two hotel brands under one roof means the amenities and operating infrastructure get shared between them, according to Peachtree.
The tower is slated to open in early 2029. The amenity list is doing a lot of the differentiation work: a two-story signature lifestyle restaurant, a rooftop bar and lounge, a separate Embassy Suites restaurant and bar, a Tempo café, meeting and event space, and a fitness center.
"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," said David Merritt, president and owner of Merritt Development Group.
Location, Location, Elevation
The site is surrounded by roughly 14 million square feet of Class A office space. It also sits near the Texas State Capitol, the University of Texas at Austin, Sixth Street and the Red River Cultural District.
Peachtree CEO Greg Friedman said the location reflects confidence in the city's trajectory. "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 said.
That confidence has company. The five-county Austin region is projected to grow from 2.6 million to 3.23 million people by 2035. The city is backing that growth with a $1.6 billion redevelopment of the Austin Convention Center and a multibillion-dollar expansion at Austin-Bergstrom International Airport.
Snapshot:
Project Name: Dual-branded Embassy Suites by Hilton and Tempo by Hilton
Developer: Peachtree Group
Co-Developer: Merritt Development Group
General Contractor: DPR Construction
Architect/Interior Designer: DLR Group
Location: Corner of Fifth and Lavaca streets, downtown Austin, Texas
Sector: Hospitality, dual-brand hotel
Scope: 480 guestrooms across two Hilton brands
Height: 30 stories
Status: Construction underway (groundbreaking announced September 15, 2026)
Expected Completion: Early 2029
Amenities: Two-story signature lifestyle restaurant, rooftop bar and lounge, Embassy Suites restaurant and bar, Tempo café, meeting and event space, fitness center
Surrounding Market: Approximately 14 million square feet of Class A office space nearby
Nearby Landmarks: Texas State Capitol, University of Texas at Austin, Sixth Street, Red River Cultural District
Regional Population: Approximately 2.6 million across the five-county Austin region, projected to reach 3.23 million by 2035 (Opportunity Austin)
Related Regional Investment: $1.6 billion Austin Convention Center redevelopment and expansion; multibillion-dollar Austin-Bergstrom International Airport expansion
Market Note: Peachtree cites limited new hotel supply expected in Austin in the years ahead as part of its investment rationale
TheJobWalk Thoughts
Dual-brand jobs like this live or die on sequencing. Sharing amenities and operating infrastructure between two hotel brands under one roof can mean trades touching common areas are working against two sets of brand standards instead of one. That's worth building into the bid rather than sorting out mid-project.
Peachtree's own rationale for this site leans on limited new hotel supply expected in Austin even as convention and airport capacity keep expanding. That's their read on the market, not an independently verified trend, but it's a specific enough thesis to tell you something. They're betting on scarcity holding up demand, not just on Austin's growth continuing.
For anyone tracking where hospitality development dollars are heading next, that's the more telling signal in this release. Limited competing supply against rising demand generators says more about the thesis behind this project than the room count does.
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