A well-heeled real estate investor in Dallas has acquired another piece of the city and is planning a major renovation of the Hilton-branded hotel to build the area's largest open-air rooftop bar.
Ray Washburne, who leads Charter Holdings, in a partnership with Pennsylvania-based Liberty Hospitality Partners, purchased the Tru by Hilton Dallas Market Center hotel at 1949 N. Stemmons Freeway just north of downtown for an undisclosed sum. The 152-room hotel that sits across the freeway from the Dallas Infomart was last valued at $10.3 million on the county tax rolls. The building was originally constructed as a bank before it was converted into a hotel in January 2021.
The partnership acquired the property from an affiliate of Texas-based real estate investment firm Napali Capital LLC. The firm is led by co-founder and managing partner Tim Black, the former chief operating officer of Great Wolf Resorts, a hospitality company with a national portfolio of indoor water resorts.
Washburne, who is one of the owners of the historic Highland Park Village shopping plaza, has been growing his local real estate portfolio over the past couple of years, including the recent acquisition of the Greyhound bus station near the Dallas Convention Center in downtown Dallas. The bus station sits near the former Dallas Morning News property that Washburne also acquired with plans to redevelop the aging site.
The redevelopment plays come as Washburne has also been adding office buildings to his portfolio, such as the century-old Founders Square building in the city's central business district.
Washburne was not immediately available to speak to CoStar News further on Monday. The details of the redevelopment of the hotel's rooftop into what the ownership group said will be Dallas' largest open-air rooftop bar were not immediately disclosed. The partnership is working through the final designs of the new rooftop bar with Washburne's restaurant group, M-Crowd, which will manage the rooftop operation.
The rooftop bar will become a key part of the new hotel ownership's business plan, officials said, with a program that offers food, a full menu of drinks including the popular Mambo Taxi margarita, and a curated ambiance.
The acquisition was a strategic investment for Charter Holdings and Liberty Hospitality Partners, leveraging Charter's experience in Dallas real estate and Liberty Hospitality's track record with a variety of Hilton-branded hotels across multiple markets, according to the statement.
"We're creating more than just a bar; we're designing a rooftop destination that will become a must-visit spot in Dallas," Washburne said. "Guests can expect top-notch cuisine, craft cocktails, and an atmosphere that captures the essence of Dallas nightlife, all while enjoying breathtaking views of the city."
The Dallas hotel market is "experiencing significant growth," said Dan Klingerman, president of Liberty Hospitality Partners, in a statement. The trend is fueled by strong demand from both business and leisure travelers, he added, positioning the city, which has flourished as a major economic and cultural hub, for continued success in the hospitality industry.
The Lone Star State is gearing up for a hotel room boom, with more than 14,000 hotel rooms coming to various Texas markets in the next 36 months, CoStar Analytics Director Colin Sherman said in a recent analytics report on Texas' hospitality markets. The Dallas market leads the state in the number of rooms under construction with more than 5,500 hotel rooms in the works — ranking second in the nation behind New York City and ahead of Orlando, Florida.
Sherman said the majority — about 13,000 — of the hotel rooms under construction in Texas are expected to be completed by the end of 2026.