Arboretum-area hotel to get new owners, new brand

Jul 1, 2014
Austin American Statesman

New owners are planning more than $7 million worth of improvements to an aging Arboretum-area hotel

Driftwood Hospitality Management purchased the 194-room Holiday Inn Austin Northwest-Arboretum Area for $13.5 million in late June from RLJ Lodging Trust, which had owned the hotel since 2006

The deal works out to about $70,000 per room, RLJ Lodging Trust executives said

The 30-year-old Holiday Inn is at 8901 Business Park Drive, adjacent to the U.S. 183 and MoPac Boulevard (Loop 1) interchange in North Austin

Renovation work will begin this fall and should be completed in about a year, Driftwood Hospitality Management said. Once work wraps up, the hotel will be rebranded as a DoubleTree property

Construction will be phased, the company said, allowing the hotel to remain open while renovations take place. Plans call for upgrades to guest rooms and the swimming pool area, a redesigned lobby featuring a bar, a new restaurant in the hotel’s atrium and expanded spaces for meetings and other functions

“The Holiday Inn Austin has a phenomenal location near the Arboretum and Domain, both of which are hotbeds of mixed-used development construction and activity at the moment,” Steve Johnson, executive vice president of acquisitions for Driftwood Hospitality Management, said in a written statement. “The Austin Arboretum sector is home to several high-tech corporations, as well as educational, medical and financial facilities. We couldn’t be happier to expand our portfolio in this diverse area.”

Based in North Palm Beach, Fla., Driftwood Hospitality Management has about 40 properties nationwide. Seven are in Texas, the company said, including the Comfort Suites in San Marcos

Bethesda, Md.-based RLJ Lodging Trust has unloaded a number of hotels, including the Holiday Inn Austin Northwest-Arboretum Area, in recent months, as it works to free up capital by selling off properties it has deemed as “non-strategic.”

Print Article opens in new window