The oldest hotel in Austin, Texas, came under new ownership last year after a group of local investors came together with the shared mission of preserving and revitalizing landmarks in the fast-growing city.
The Driskill, which was built in 1886 at 604 Brazos St. in downtown Austin, is located a few blocks from the Texas Capitol and is where former President Lyndon B. Johnson had his first date with his future bride, Lady Bird.
Austin-based Pixiu Real Estate and other Austin-based investors teamed up with Dallas-based Woodbine Development Corp. to buy The Driskill from Hyatt Hotels & Resorts for $125 million. The Driskill had been in Hyatt Hotels Corp.’s portfolio since 2013. The deal earned a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.
"As our community continues to grow, I believe we need to preserve and revitalize landmarks like The Driskill that have contributed to the making of Austin’s distinct character and spirit," said Pixiu’s Eddie Margain, who is also an investor in the MLS club Austin FC.
About the project: The new ownership group plans to invest a substantial amount of capital to maintain and elevate the 189-room luxury hotel. Hyatt will remain as the hotel's on-site management team.
What the judges said: “Hotels are a risky business, and an old hotel like the Driskill could have been a hard asset to sell. Great to see it purchased by a local owner with plans and hopefully funding to renovate this important and historic downtown Austin asset. As Austin changes, it’s great to know that a part of old Austin will survive and hopefully thrive,” said Greg Hallman, the director of real estate at the University of Texas McCombs School of Business.
They made it happen: JLL Hotels & Hospitality Group brokered the sale, while Interbank was the lender. Dealmakers included Eddie Margain and Phillip Lauterbach with Pixiu and Markus Puereschitz, general manager of The Driskill.
