The Hospitality Newsletter
Today Friday, September 4, 2026
Original finance The Hospitality Newsletter Team · ·For: Owner, Investor, Ops

Marriott AC Hotel Ground-Up Pipeline Expands Across the South

Recent groundbreakings reveal Marriott's AC Hotel brand targets high-density southern submarkets including Houston and Chattanooga.

The short answer

Marriott is expanding its select-service AC Hotel flag across high-demand Southern markets with new builds in Houston and Chattanooga. The $19-million West Houston project anchors a major mixed-use hub with 153 keys.

$19-million
development cost of Houston project
CITYCENTRE Houston build
153
guestrooms in AC Hotel CityCentre Houston
six-story development
85,810
approximate square footage
AC Hotel CityCentre Houston
Marriott AC Hotel Ground-Up Pipeline Expands Across the South
Photo: Wolfgang Weiser / Pexels

The short version

  • PA Hospitality leads a $19-million AC Hotel build in West Houston's CITYCENTRE.
  • Anchor Construction broke ground on the six-story, 153-room Houston asset.
  • Chattanooga joins Houston as an active Southern ground-up AC Hotel market.

Marriott targets ground-up AC Hotel developments in growing Southern metro submarkets and mixed-use commercial nodes, as evidenced by simultaneous new construction projects underway in West Houston, Texas, and Chattanooga, Tennessee. These separate builds demonstrate the brand's positioning in pedestrian-accessible master developments and secondary city business districts. [1] [2]

Where is AC Hotel expanding in the Houston metropolitan area?

In West Houston, Texas, construction is officially underway on the AC Hotel by Marriott CityCentre Houston. As reported by Lodging Magazine, general contractor Anchor Construction broke ground on the property, which is located directly within the CITYCENTRE district. [2]

Led by developer PA Hospitality, the project is a $19-million new-build investment designed by architecture firm DLR Group. [2] The development will rise six stories and introduce 153 guestrooms across approximately 85,810 square feet of interior real estate. [2]

modern hotel exterior architecture facade
Photo: Jan van der Wolf / Pexels

What amenities will the Houston CityCentre property offer guests?

The West Houston property is tailored to corporate and leisure submarket demand through select focused-service amenities. According to Lodging Magazine, the facility features a hotel bar, an on-site pool, a fitness center, dedicated meeting rooms, and functional event spaces designed to complement its high-traffic shopping and corporate location. [2]

What secondary Southern metro markets are breaking ground on AC Hotels?

Beyond massive commercial districts like Houston's Energy Corridor and West Houston, Marriott's brand pipeline also targets high-growth secondary Southern cities. Lodging Magazine reported that the brand has officially broken ground on the AC Hotel Chattanooga in Tennessee. [1]

This separate development reflects the brand's footprint expansion into mid-sized urban cores across the Southeast, placing upscale European-inspired select-service inventory into downtown markets experiencing continuous business travel inflows. [1]

hotel construction site steel framework
Photo: Laura Cleffmann / Pexels

How do the project specifications compare across these two builds?

While both properties represent ground-up additions to the Marriott select-service portfolio in the American South, their execution details reflect distinct submarket approaches.

Project NameLocationDeveloper / ContractorKey Specifications
AC Hotel by Marriott CityCentre HoustonWest Houston, TexasPA Hospitality (Dev) / Anchor Construction (GC)6 stories, 153 rooms, 85,810 sq ft, $19 million cost
AC Hotel ChattanoogaChattanooga, TennesseeNot specifiedGround-up new construction

As documented by Lodging Magazine coverage, developers like PA Hospitality are deploying tens of millions of dollars into dense suburban submarket nodes that feature high daytime office worker populations alongside dining and retail. [2]

Why are developers choosing mixed-use submarkets for ground-up select-service?

Mixed-use destinations like Houston's CITYCENTRE provide built-in commercial foot traffic, corporate demand generators, and structured amenities that reduce the programming burden on the hotel itself. According to Lodging Magazine's project breakdown, locating an 85,810-square-foot select-service asset directly adjacent to established dining and business hubs enables owners to keep floor plans lean while offering bar and meeting spaces tailored to weekday business guests. [2]

Reported by

This article was written from the following reporting. Follow the links for the original coverage.

Frequently asked

+Where is the new Houston AC Hotel located?

The AC Hotel by Marriott CityCentre Houston is located in West Houston, Texas, within the CITYCENTRE development.

+What is the construction cost of the AC Hotel CityCentre Houston?

The project is a $19-million ground-up development led by PA Hospitality.

+How many rooms will the West Houston AC Hotel have?

The six-story hotel will span approximately 85,810 square feet and house 153 rooms.

+Who designed the AC Hotel CityCentre Houston?

Architecture firm DLR Group designed the property, with Anchor Construction serving as the general contractor.

+What other Southern city has broken ground on an AC Hotel?

Chattanooga, Tennessee, has also broken ground on an AC Hotel property.

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