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Marble Falls: City and Boerne Developer Partner on $36 Million Hilton Hotel

Featured Illustration: Artist rendering of the proposed hotel by Cooper Carry Architects. 

Posted: 10-22-2021

by Art Benavidez

Marble Falls (Burnet County) — A Boerne-based developer entered into a public-private partnership this week with the city for a hotel with a cost estimate of more than $36 million.

The name of the development is the Downtown Hotel and Conference Center Project on city documents. City Council approved the contracts Oct. 19.

The project is the result of a desire by city leaders to have a conference center/hotel on land owned by the Marble Falls Economic Development Corporation (MFEDC) at the intersection of the historic Main Street district and the city’s waterfront parks.

The partnership includes agreements whereby Phoenix Hospitality Group LLC (PHG) and its partner purchase a 3-acre lot from the MFEDC for $2 million. 

In exchange, the MFEDC will give the developers $6.8 million for associated costs, including construction and design of a $35 million, 116-room Tapestry Collection by Hilton hotel.

Additionally, a 25-year contract to manage the property calls for the MFEDC to provide $525,000 yearly for operations in the first three years and $225,000 annually for the remainder of the agreement. These payments are to stabilize and then subsidize operations of the conference center.  

The MFEDC approved the agreement on Sept. 27.

VBX last reported on the project in June of 2020 when the city approved an amendment extending a memorandum of understanding (MOU) between the MFEDC and the Phoenix Hospitality Group.

The scope of work includes more than 14,000 square feet of meeting space, including a 6,700-square-foot main ballroom, 1,700-square-foot junior ballroom, 400-square-foot boardroom and 4,000-square-foot rooftop venue with dedicated elevator access.

Level one site plan.

The site is located at the intersection of Yett Street and Main Street with construction of the project expected to begin in early 2022 and be ready by mid-2023.

According to city documents, the project will have an estimated economic impact of $250 million over its first 20 years and provide for 40 full time jobs.

Burnet County will also consider a 75% ad valorem tax abatement for 10 years at an upcoming meeting.

PHG partnered with Hawkins Family Partners LP to form Marble Falls Hotel Group LLC. Marble Falls Hotel Group will provide the debt sponsorship for a 50% loan and cash equity to complete the project.

The Longview office of KSA Engineers and the Alexandria, Virginia office of the national architectural firm Cooper Carry Architects are onboard the project.

VBX Project ID: 2021-7698


art@virtualbx.com

Aerial view of site. Image: Google Streets

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By |2021-10-22T16:23:27-05:00October 22nd, 2021|Construction Preview, Feature Story|

About the Author:

Art Benavidez (Construction News Reporter, Central Texas) is a seasoned journalist with over 15-years of experience in writing breaking news and in-depth features at the local level. He honed his research and reporting skills in newspapers and magazines throughout South and West Texas along with expertise in crafting digital content as Managing Editor of New Image Marketing Research Corporation. Benevidez is a Texas native and graduate of UT-RGV.

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