Major downtown Austin hotel project secures financing

Oct 27, 2014
Austin Business Journal

Manchester Texas Financial Group, the developers of The Fairmont Austin hotel, have secured project financing, clearing the way for the $370 million project to break ground in early November

Financing was provided by Colony Capital LLC

"It's time for construction of the Fairmont Austin to fire on all cylinders," said Doug Manchester, president of MTFG, in a statement. "We're thrilled to have aligned with a first-class operator in Fairmont and a premier funding source in Colony Capital"

Colony Capital has a lot of experience making investments in the hospitality sector. Its fingerprints are on more than 4,300 hotels in more than 100 countries, including investments in Accor, Savoy Hotel Group and SLS Hotels among others. It is the fourth-largest private equity real estate firm in the world, according to Private Equity Real Estate

Located at Cesar Chavez and Red River streets, the 37-story Fairmont Austin will have more than 1,060 rooms, and a four-level underground parking garage. The development will total roughly 1.4 million square feet, and – at 595 feet tall – will be the second-tallest building in Austin's skyline after the 680-foot Austonian residential tower

Hunt Construction Group is handling the $247 million construction contract. Dwg, an Austin landscape architectural firm, was selected to handle landscaping for the project

The building will connect directly to the Austin Convention Center by way of an aerial walkway

This is the second Fairmont hotel in Texas, joining the Fairmont Dallas Hotel

The Austin hotel will also have more than 106,000 square feet of meeting space, plus a 19,000 square foot deck. It is expected to generate more than $15 million in hotel occupancy tax revenue and more than $6 million in property taxes each year

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