Pinnacle Hotels Plans Downtown Austin Rezoning for Resi & Hotel Development

Pinnacle Hotels USA, led by CEO Barry Lall, is initiating a significant development just east of downtown Austin. They aim to transform the existing six-story DoubleTree UT Austin hotel into a pair of high-rise structures featuring both residences and hotel rooms. Situated on a 3-acre site along North I-35 Service Road, the project, named Pinnacle Plaza, is adjacent to a Denny’s restaurant undergoing redevelopment into condominiums by Ledgestone Development Group.

Rezoning and Increased Density

Pinnacle has applied for rezoning the property to allow for higher density. If approved, the changes would significantly increase the floor-to-area ratio, building height, building coverage, and impervious cover.

Property Details and Valuation

The current property includes the 149-room DoubleTree hotel, a 3,000-square-foot meeting space, and 65,000 square feet of surface parking, with a total valuation of $22 million according to the Travis Central Appraisal District. Pinnacle also owns the DoubleTree Northwest Arboretum among its nine hotels in California and Texas.

Downtown Austin's Development Landscape

While developers are drawn to areas like the Domain and East Austin, notable projects continue to emerge in downtown Austin. Pearlstone Partners is redirecting its efforts from a previous condo project near the Texas Capitol to a 35-story hotel for its 14th & Lavaca tower. Northland Living seeks to redevelop the Combined Law Enforcement Associations of Texas headquarters into a 35-story condo building, adding to the downtown area's transformation.