2,000 hotel rooms proposed for Austin

AUSTIN (KXAN) - A shortage of hotel rooms is starting to hurt Austin's economy. The city missed out on a $5-million boost when Dell decided to take its annual convention to Las Vegas. It said the local hotel market was unable to accommodate its expanded event.

But the forecast for hospitality here is brightening. Five projects are already in the works and another three are looking for sites downtown. In addition to others popping up across the city, the projects would open up another 2,000 rooms.

"It's not that we need a lot of rooms,” said Bob Lander, president and CEO of the Austin Convention and Visitors Bureau. “It's the type of rooms that we need."

When there's a large event, it pays to have a big hotel like the 800-room Hilton where all the guests can stay in one place. The Hilton is right across the street from the city's convention center which can fit more than 3,000.

"What we really need is another big, convention hotel,” said Lander, pointing to an empty lot meant for a previously proposed 1000 plus room Marriott. “The hotel that was proposed right here behind me is a hotel that we kind of missed an opportunity on."

By the start of next year, Austin will already have more than 30,000 hotel rooms. The additionally proposed projects will help, according to Lander.

"Actually, I work at this hotel behind me,” said Michelle Estep, a downtown hotel worker. “This is supposed to be the big convention season. We haven't seen the turnout we've seen in previous years."

Having enough rooms for those big blowouts is one thing. Beyond that, Estep said it might just be a lot of empty and costly rooms.

"Throughout the rest of the year,” she said. “I just don't see it."

Lander said the Mariott project is not dead, just on hold. He predicts the first quarter of the coming year to improve financially for developers, and Austin could see several of these projects coming online after that.

Check out the proposed hotel projects in downtown Austin here and more below:

21c Museum Hotel
Hotel & Museum & condos
209 rooms

W Hotel
Block north of city hall
Just received funding from a Nevada bank
250 rooms

Novare
Mixed use with retail/condos
Block between 5th & 6th, west of Guadalupe
150 rooms

Starwood Capital
Austin Hotel Holdings
Location TBA
4-star luxury
Green rooftop deck

Westin
3rd street
303 rooms

Unnamed
5th & Brazos
300 rooms

Hyatt Place
3rd & San Jacinto
276 rooms

Hotel Van Zandt
Somewhere on Lady Bird Lake
Kimpton-operated
307 rooms