Peachtree and Merritt Break Ground on 480-Key Austin Tower

Peachtree Group and Merritt Development Group have broken ground on a 30-story, 480-room dual-branded tower in downtown Austin, Texas, pairing Embassy Suites by Hilton with Tempo by Hilton [2]. Slated to open in early 2029, the high-rise will share operational infrastructure while serving corporate, government, education, and leisure demand [1].

What are the specifications of the dual-branded tower?

The 30-story high-rise will deliver 480 keys split between Embassy Suites by Hilton and Tempo by Hilton, according to Lodging Magazine [2]. DPR Construction serves as the general contractor, while DLR Group handles both architecture and interior design duties [[1], [2]]. The tower is scheduled to welcome its first guests in early 2029 [1].

Where is the property situated and what demand drivers surround it?

The hotel is situated at Fifth and Lavaca streets in downtown Austin, placing it in immediate proximity to corporate and civic drivers, Lodging Magazine reported [2]. The site is ringed by approximately 14 million square feet of Class A office space [1]. Asian Hospitality noted the tower will sit near the Texas State Capitol, the University of Texas at Austin, Sixth Street, and the Red River Cultural District [1].

Regional projections cited by Opportunity Austin show the five-county metro population expanding from roughly 2.6 million people to 3.23 million residents by 2035 [1]. Municipal infrastructure projects supporting this growth include a $1.6 billion redevelopment and expansion of the Austin Convention Center to add exhibit space, alongside a multibillion-dollar expansion at Austin-Bergstrom International Airport to boost gate and passenger capacity [1].

How does the dual-brand operational model divide guest offerings?

The dual-brand configuration pairs all-suite corporate rooms with a design-led lifestyle footprint under one roof [1]. Embassy Suites provides full-service, all-suite inventory tailored to long-stay business and group travel, while Tempo targets travelers seeking a smaller-footprint, lifestyle-oriented stay [[1], [2]].

Shared operational back-of-house infrastructure supports both brands while dividing customer-facing amenities [1]. Public spaces will include an Embassy Suites restaurant and bar, a dedicated Tempo café, a shared fitness center, and meeting and event space [1]. The building will also feature a two-story lifestyle restaurant alongside a rooftop bar and lounge overlooking downtown Austin [[1], [2]].

Who is leading the development partnership?

Atlanta-based Peachtree Group is developing the property alongside Merritt Development Group [1]. Peachtree operates under the executive leadership of Chief Executive Officer and Managing Principal Greg Friedman, Principal and Chief Financial Officer Jatin Desai, and Principal Mitul Patel [1]. Merritt Development Group is directed by President and Owner David Merritt [1].

The Austin groundbreaking runs alongside Peachtree's wider capital deployment [1]. Asian Hospitality reported that Peachtree expanded its Delaware Statutory Trust platform via two separate acquisitions eligible for 1031 exchanges, bringing its total DST program value to approximately $525 million [1].