Two new hotels target distinct demographics in Austin, Texas

As 2022 got underway, two new hotels opened in Texas’ capital city. The Thompson Austin and the Tommie Austin are both part of Thompson Hotels—which is itself part of the Hyatt Hotels Corp. portfolio—but are meant to cater to decidedly different demographics. 

The project had been in development for the better part of a decade, since Two Roads Hospitality oversaw the Thompson brand. Developers Magellan Development Group, Geolo Capital, BLG Capital Advisors and Wanxiang America Real Estate Group had been looking to create the “ultimate urban playground” in Austin, said Nate Hardesty, managing director of the two hotels. 

Location, Location, Location

The developers selected a site on the east side of downtown Austin close to Sixth Street, a pedestrian-friendly avenue with a popular music scene. “It's just lined with bars and restaurants—similar to how Nashville is,” Hardesty said. 

Austin, as a hotel market, is “somewhere everybody wants to be right now,” Hardesty continued, citing a number of management and ownership companies that are eyeing opportunities to take over existing properties or build new ones. In June, CBRE predicted that Austin would see some of the greatest percentage gains in available rooms during the year, and Hardesty estimated that hotel supply in the city has grown 15 percent per year over the past three or four years. “So even through a pandemic, everyone still sees this as the market to be,” he said. 

Two Brands, Two Target Audiences

The concept for the dual-brand development was to cater to both traditional Thompson guests and younger guests aspiring to the Thompson experience. This was reflected in the designs for both properties, overseen by bKL Architecture (exteriors) and KTGY Simeone Deary Design Group (interiors) at the Thompson Austin and Studio Collective at the Tommie. 

At the Thompson, KTGY Simeone Deary selected artwork and woodwork from local artists and artisans, or sourced items from local shops and flea markets. “That was a big choice that the designers made,” Hardesty said. “‘Austin loves local’ is a very serious thing here …  It's really decorated with Austin in mind.” The front desk’s design was inspired by raw cut gemstones and the ceiling uses wood with a shou sugi ban finish.

Tommie guests, meanwhile, are likely to be younger, more adventurous and more interested in what the community has to offer. “The property was really built to be flexible for them to do that and to give them options,” Hardesty said, noting that the hotel will be launching tours of the city that focus on notable graffiti or taco trucks. “We're really incorporating a lot of different local Austin options within the offering.” Since the hotel is targeting guests who do not plan to spend a ton of time in their rooms, the guestrooms at the Tommie are “a little bit brighter and airier and less design-focused and a little bit more flexible,” he said.

The two properties share restaurants, a fitness center and a pool, with the biggest differences being in the room product and the digital check-in options at the Tommie. “Otherwise, all the amenities are the same,” Hardesty said. While the two properties were designed to balance and support one another, Hardesty expects Tommie guests to eventually graduate to the Thompson. “They're here for the Thompson experience.”


Thompson Austin/Tommie Austin

Location
The two hotels are adjacent to one another on San Jacinto Boulevard between Fifth and Sixth streets, close to a number of independent restaurants, bars and museums. The hotel is a 15-minute drive from the Austin-Bergstrom International Airport.

Opening
Jan. 12, 2022

Number of Rooms
212 guestrooms and 17 residences at the Thompson, 193 rooms at the Tommie Austin

General Manager/Managing Director
Nate Hardesty

Website
www.hyatt.com/hotel/texas/thompson-austin/austh
www.hyatt.com/en-US/hotel/texas/tommie-austin/auste

Owner
Magellan Development Group, Geolo Capital, BLG Capital Advisors and Wanxiang America Real Estate Group

Management Company
JdV by Hyatt

Opening Obstacle
Beyond the pandemic, supply chain challenges and a labor shortage, Austin was hit by a once-in-a-century freeze in February 2021 that affected the hotel’s construction. “The city basically was frozen in for up to 10 days and lost power,” Hardesty said. The preopening team rallied as the temperatures dropped and came in to winterize whatever they could. “Several of us ended up sleeping at each other's homes, for the folks that didn't have power,” he recalled.