Pflugerville announces second hotel will be a $20M, 142-room Marriott

May 15, 2014
Austin Business Journal

Pflugerville's second hotel will be a $20 million Courtyard by Marriott

At its May 13 meeting, the City Council of the North Austin suburb passed an incentives package to support the hotel including a below-market sale of the 6.5-acre site at 130 Commerce Center, a $125,000 marketing budget funded by the city's development corporation, fee waivers and up to $625,000 in incentives from the hotel occupancy tax

The incentives agreement, announced by city officials and the Pflugerville Community Development Corp. at the meeting, is contingent on hotel developer Village Pflugerville Holdings LLC investing $20 million to build a hotel with at least 120 rooms and an on-site restaurant and bar. Plans for the hotel call for 142 rooms. About $5 million of the project's budget is tagged for an attached conference center that seats about 750 people

The hotel is the second recently announced for Pflugerville, which has been seeking a hotel for years

The tide turned after the opening of State Highway 130, which runs near the city and offers a much less congested – though out-of-the-way – option to I-35, and after Hawaiian Falls invested more than $20 million for a new water park. The park is expected to bring more than $30 million in economic impact, along with 300,000 annual guests and $6.2 million in sales, according to an economic impact study commissioned by the Pflugerville Community Development Corp. and conducted by Impact DataSource

The Hawaiian Falls park is nearing completion, but may face slight delays that will push the opening date past Memorial Day

The first hotel in Pflugerville, a planned 70-room, $5 million Best Western Plus, will be built near the planned Courtyard near State Highway 130 and Pecan Street. Both intend to capitalize on water park visitors and even Formula 1 fans in November. Construction on the Best Western is expected to begin within 90 days and be complete by the middle of 2015

The Courtyard Marriott hotel is being developed by a partnership between Seneca Investments, Rochester Real Estate and Harrell Hospitality Group. Construction is expected to begin by the end of the year and be completed by May 2016 or sooner

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