Peachtree Group Begins Construction on 480-Room Dual-Branded Embassy Suites by Hilton and Tempo by Hilton in Downtown Austin

Peachtree Group (“Peachtree”), a vertically integrated investment and asset management firm, announced it has begun construction on a 480-room dual-branded Embassy Suites by Hilton and Tempo by Hilton in downtown Austin, marking one of the group’s most significant hotel developments to date.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260915285691/en/

Peachtree Group breaks ground on a 480-room dual-branded Embassy Suites by Hilton and Tempo by Hilton in downtown Austin. LtR: Kyler LeMaster, Peachtree Group Katy Zamesnik, Austin Convention Center John Schellhase, Peachtree Group Dave Merritt, Merritt Development Group Jacob Maichel, Eldridge Capital Management Greg Friedman, Peachtree Group Jatin Desai, Peachtree Group Michael Ritz, Peachtree Group Danny Hughes, Hilton Bonnie Campagnuolo, Hilton Matt Wheling, Hilton

Located at the corner of Fifth and Lavaca streets, the 30-story development will feature 480 guestrooms across Embassy Suites by Hilton and Tempo by Hilton and is expected to open in early 2029. Peachtree and Merritt Development Group are co-developing the project, with DPR Construction serving as general contractor and global design firm DLR Group serving as architect and interior designer.

The hotel will offer an array of upscale amenities, including an approximately two-story signature lifestyle restaurant, a rooftop bar and lounge with sweeping views of downtown Austin, an Embassy Suites restaurant and bar, a Tempo café, meeting and event space and a fitness center.

The development is situated in the heart of downtown Austin, surrounded by approximately 14 million square feet of Class A office space and near many of the city’s primary business, leisure and entertainment, including the Texas State Capitol, the University of Texas at Austin, Sixth Street and the Red River Cultural District.

“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, CEO and managing principal of Peachtree Group. “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. This is a significant investment in Austin and reflects our conviction in the long-term growth of the city.”

The project will combine Embassy Suites’ full-service, all-suite offering with Tempo by Hilton, Hilton’s lifestyle brand designed for modern travelers. The dual-brand strategy is designed to appeal to different guest segments while allowing the hotels to share amenities and operating infrastructure.

“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, Merritt Development Group. “The location at Fifth and Lavaca puts the hotel at the center of everything that makes Austin such a compelling destination. We are pleased to once again partner with Peachtree to bring this development to life.”

Austin’s rapid growth is driving significant public and private investment across the region. The five-county Austin region is home to about 2.6 million people, and Opportunity Austin projects the population will reach 3.23 million by 2035, reinforcing the region’s expanding economic base and long-term demand for hospitality. Major investments are matching that growth with the infrastructure needed to support it, including the $1.6 billion redevelopment and expansion of the Austin Convention Center and a multibillion-dollar expansion of Austin-Bergstrom International Airport, which is expected to increase passenger and gate capacity significantly.

Together, these investments are strengthening Austin’s long-term hospitality demand across corporate, convention, government, education and leisure travel. The new hotel is positioned near major demand generators, including the Texas State Capitol, the University of Texas at Austin, downtown’s corporate base and the city’s entertainment districts. With greater air connectivity, expanded convention capacity and limited new hotel supply expected in the years ahead, Peachtree believes the property is well positioned to benefit from Austin’s continued growth.

About Peachtree Group

Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260915285691/en/

Media gallery