Hotels: The Next Big Amenity to Drive Neighborhood Mixed-Use Projects

Austin is (still) popping. That was the common theme at B2B/CRE digital news outlet Bisnow’s recent annual Austin State of the Market event. The stats back it up. The city’s population exceeds 1 million residents (median age of 34), and its median household income exceeds $99k, according to U.S. News and World Report’s most recent Best Places to Live rankings.

Those demographics support the narrative shared by the experts at the Bisnow event; they’re bullish on Austin, its development and growth. Adolfson & Peterson Construction Director of Business Development Amber Autumn led a panel of experts in a discussion on the attributes of delivering a top project – from vision to vertical – in Austin (and across the country).

Speaking on her panel: Arch Amenities Group SVP Real Estate Mark DePiero; EnvelopiQ President Matt Isbell; Urbanspace CEO Kevin Burns; and Delightful Development Company Co-Founder Craig Cavileer.

Amber recapped some of the highlights from the panel discussion, including how hotels now often function as an anchor element of mixed-use projects.

This panel was remarkable and had incredible insights into the variety of ways hotels can create community and serve as the glue of the neighborhood,” Amber said. “Hotels are often combined with a variety of commercial real estate assets, including residential, office, restaurant and retail/entertainment complexes.

Today, luxury, boutique and out-of-the-ordinary hotels often serve as anchor elements of mixed-use projects, and it may sound counterintuitive, but they can actually foster identity in a neighborhood, she said.

In Austin specifically, lodging serves as an essential component of many projects. Developers today recognize hotels can create a symbiotic pull with other mixed-use elements when paired in the right setting, Burns said.

Cavileer said hotels opening in mixed-use buildings create an ecosystem where guests, restaurant-goers, retail shoppers and even apartment residents enhance the experience. “All of those factors matter when you’re trying to build a hotel that’s going to be everlasting. It goes way beyond architecture and landscape, and it gets to an emotional sense of place that you are shooting for,” he said.

Burns discussed the benefits of using hotels, restaurants, bars and boutique storefronts as amenities for his company’s high-rise condo, The Modern Austin Residences. The same is true for hotels: If the locals love it, tourists will follow.

Hotels in mixed-use developments serve as community infrastructure, not simply as hospitality amenities, Amber said. “This ties into AP’s construction credibility angle. We build for permanence, not just delivery. It really focuses on placemaking and crafting for generations to come,” she said.

A great example is the Chicago Hotel Collection Ambassador Gold Coast (known by the locals as the Ambassador). Located in a 100+-year-old building, when the hotel underwent redevelopment, it was celebrated with lights and a red carpet. The neighborhood and area residents showed up and shared their fond memories of the iconic hotel, Autumn said.

The hotel is an ingrained central community place, exemplifying its integral role in the life of the city. The neighbors feel ownership of it, hosting family parties and significant celebrations there, she added.

According to data from a recent Bisnow report, Austin’s hospitality market continues to see steady, strong demand for tourism, making new hotel projects attractive to developers in Austin’s MSA, particularly in the suburbs. Some bigger hotel projects under construction in the city include 1 Hotel Austin, which anchors the 74-story Waterline tower and is planned to open in August, and Hotel Trinity, which will span 13 stories and open later this year.

The report further states roughly 1,600 keys are expected to be delivered this year, which is almost 25% higher than 2025. The city demolished its 365K SF Austin Convention Center in 2025, with a 620K replacement expected to deliver in 2029. Revenues from the new convention center are projected to generate $750M annually.

Ultimately, Amber said hospitality is a defining community asset. The right projects aren’t viewed by surrounding residents as transient places where people come and go. It is a relational shift in how people look at it. In the end, the community and region benefit from these neighborhood-centric developments.

Stay tuned for part two of the panel recap. More insights are on the way!