Two Hilton brands under one roof in downtown Austin
Peachtree Group has started construction on a 480-room hotel in downtown Austin. The building pairs Embassy Suites by Hilton with Tempo by Hilton. The tower runs 30 stories at the corner of Fifth and Lavaca streets, and Peachtree expects an opening in early 2029.
Peachtree and Merritt Development Group are co-developing the project. DPR Construction holds the general contractor role. DLR Group serves as architect and interior designer.
Peachtree published no room split between the two brands. Neither brand’s revenue team inherits a published inventory picture for the building.
Two brands sell to two demand sets
Embassy Suites carries a full-service all-suite format. Tempo is Hilton’s lifestyle brand. Greg Friedman, Peachtree’s chief executive officer and managing principal, said the pairing serves business, group and leisure travellers from one building.
The amenity programme covers an approximately two-story signature lifestyle restaurant, a rooftop bar and lounge, an Embassy Suites restaurant and bar, a Tempo cafe, meeting and event space and a fitness centre. Meeting and event space puts group demand in the same building as the transient base.
The demand the developer named
Peachtree ties the investment to regional growth. The five-county Austin region holds about 2.6 million people, and Opportunity Austin projects 3.23 million by 2035.
Two public projects run alongside the opening target. The Austin Convention Center redevelopment and expansion carries a USD 1.6 billion figure. Austin-Bergstrom International Airport runs a multibillion-dollar expansion of passenger and gate capacity.
The release places the site inside roughly 14 million square feet of Class A office space, with the Texas State Capitol, the University of Texas at Austin, Sixth Street and the Red River Cultural District nearby. Set the weekday base against that office and university demand, and set the event space against the convention centre timeline.
The figures on the record
A March 2026 filing with the Texas Department of Licensing and Regulation carries a construction cost near USD 135 million. A separate trade report carries a development cost above USD 250 million. The release reconciles neither figure.
The announcement names no operator for either brand. It carries no capital stack, no equity split, no fee structure and no construction completion date beyond the early-2029 target. Watch the operator appointment: that decision carries the property management and revenue systems for both brands.