New boutique hotel and conference center project coming to the capital region. The Marble Falls Economic Development Corporation (MFEDC) has been working with Phoenix Hospitality Group (PHG) since the fall of 2019 on the development of a boutique hotel and conference center project on land owned by the MFEDC at the intersection of the historic Main Street district and the City’s waterfront parks. Cooper Carry Architects, along with numerous sub-consultants and engineers, have completed the schematic design of the project, which includes the following highlights:

  • 123-room Tapestry by Hilton hotel
  • More than 14,000 square feet of meeting space, including a main ballroom of approximately 6,700 square feet, a junior ballroom of approximately 1,700 square feet, and a board room of approximately 400 square feet, along with pre-function space and other common areas
  • Rooftop venue of approximately 4,000 square feet with dedicated elevator access

The current cost estimate for the development of the project is more than $36 million. Hawkins Family Partners, LP (HFP) has partnered with PHG in the formation of the Marble Falls Hotel Group, LLC (MFHG). This entity will provide the debt sponsorship for a 50% loan and cash equity to complete the project. The following agreements will be discussed and acted upon at a special MFEDC meeting on September 27, 2021:

  • Purchase Agreement between the MFEDC and Hawkins Family Partners, LP – HFP will pay MFEDC $2 million for Lots 1, 2, and 3 of the Downtown Hub Addition—totaling 2.929 acres—and contribute the land to MFHG; MFEDC will retain the right to repurchase the property in the event of a default
  • Performance Agreement between the MFEDC and Marble Falls Hotel Group, LLC – MFEDC will contribute $6.8 million to the project’s capital stack on a pro-rata basis with MFHG’s cash equity; MFEDC funds will come from 2016 bond proceeds that have been held in an account dedicated to the hotel/conference center project
  • Conference Center Nonexclusive Lease and Management Agreement between the MFEDC and Marble Falls Hotel Group, LLC – MFEDC will make annual lease payments to MFHG to help stabilize and then subsidize operations of the conference center facility; the amount in years 1-3 will be $525,000 and $225,000 in years 4-25; at least 40 full-time-equivalent jobs will need to be maintained for MFHG to receive the lease payment

In addition, the City will consider a hotel tax abatement in the amount of $300,000 for 25 years at a meeting on October 19, 2021, and Burnet County will consider a 75% ad valorem tax abatement for 10 years at an upcoming meeting. The project is expected to break ground in the first quarter of 2022 and be open for business in mid-2023. The estimated economic impact of the project over its first 20 years is more than $250 million.