Hotel construction ramps up in Austin

AUSTIN – The sounds of new construction are among the dominant sounds wafting above the downtown Austin skyline, as the city welcomes a new wave of hotel construction and construction plans, according to Matt Murphy of Hardin Construction LLC.

By early 2013, no fewer than five major hotels will be under construction, delivering more than 2,000 rooms to Austin’s central business district.

The number of hotel rooms in the city’s central business district is put between 6,000 and 7,500. An occupancy rate downtown that exceeds 70 percent suggests that the central business district market can indeed support additional capacity.

During November 2012 through the year 2021, Austin will host the Formula One U.S. Grand Prix, accommodating Formula One racing’s return to the U.S. following a five-year absence. The high-profile race could attract some 300,000 fans.

The new hotel construction is part of an overall downtown building boom that also includes high-rise office buildings as well as mixed-use and multifamily developments cropping up in response to young, single professionals’ enchantment with downtown living.