Core Report

Austin American-Statesman

By Shonda Novak | Wednesday, September 9, 2009, 03:47 PM

In the first major new hotel announcement in nearly two years, a 17-story hotel is planned for downtown Austin near the Warehouse District.

The hotel, proposed for the southwest corner of West Fifth and Colorado streets, would be a new “eco-luxury” concept called One, by Starwood Capital Group. Starwood Capital has billed the concept as the first luxury, eco-friendly global hotel brand.

Starwood has hired Woodbine Development Corp. to build the hotel with 250 to 275 rooms.

Woodbine, a seasoned hotel developer based in Dallas, developed the Hyatt Regency Lost Pines near Bastrop, as well as the Hyatt Regency Hill Country and the Westin La Cantera, both in San Antonio.

Steve Drenner, the Austin attorney for Starwood Capital, has filed a request for a zoning change that would allow a building with more square footage than city rules allow. Many downtown projects have received such allowances, including the 360 condominium tower and the W Austin Hotel and Residences under construction north of City Hall.

The higher side of the Starwood project would face Fifth Street, rising approximately 210 to 215 feet. The southern side, backing up to the Warehouse District, would be 30 to 35 feet high. There also will be a large deck, about 60 feet above ground level, with amenities including pool, public bar and “green” roof with significant landscaping.

The site is now occupied by a two-story brick building.

The board of the Downtown Austin Allliance, a group of downtown property and business owners, has endorsed the zoning change after hearing a presentation on the project last week.

Molly Alexander, executive director of the alliance, said that Starwood’s willingness to bring its new concept to Austin “continues to prove that Austin is the place to test new products, and that downtown is still a hot market.”

And to roll out a project with an emphasis on green features and sustainability, she said, “shows that we are on the cutting edge of the next phase of development.”

The City Council will have the final say on the project once it moves through several city commissions for approvals.

The zoning process is expected to be completed before the end of the year.

The hotel is the first new hotel project to be proposed downtown since Hixon Properties Inc. announced plans in February 2008 for a Westin hotel at Third and Colorado Streets. Hixon has not said when it would start the project.

Several other downtown hotel projects have been put on hold due to a lack of financing, including a 1,000-room Marriott hotel planned on Congress Avenue between Second and Third Streets.

At the former Seaholm Power Plant, a mixed-use project is planned that would include a 180-room hotel. Jeff Trigger and his La Corsha Hospitality Group will oversee the construction, management and operations of the hotel, but work may not start until next year, Trigger said.

“Currently, neither we nor the debt financing market are ready to begin construction of the high-rise building where the hotel, office and residential uses will be housed. We hope next year when we are ready, the financing will be as well,” said Trigger, former managing director of the Driskill Hotel.