AUSTIN – (Realty News Report) – Host Hotels & Resorts has completed a major renovation at the Hyatt Regency Austin, enhancing the growing vibrancy on the south side of Lady Bird Lake that runs through downtown Austin.
Originally opened in 1982, the Hyatt Regency Austin was somewhat isolated from much of the downtown high-rise development on the lake’s north side. Lady Bird Lake is a narrow reservoir formed by a dam on the Colorado River, and for years the hotel largely watched the skyline change from across the water.
The cost of the renovation was not disclosed, but the scope was broad: guest rooms, meeting spaces, restaurants and bars, lobby, and pool deck all received significant upgrades.
“Virtually every square inch of the interior of this property has been touched by this transformation,” said Jeff Donahoe, general manager of the 16-story hotel.
The property’s room count increased slightly to 450 rooms by reconfiguring space such as the former oversized presidential suite; the hotel had previously listed 448 rooms. Staff offices were relocated to make room for a new glass-walled meeting room overlooking the waterfront that will generate revenue. After purchasing the hotel for $161 million in cash in March 2021, Host Hotels & Resorts — the largest publicly traded real estate investment trust focused on lodging — waited nearly five years to complete the Hyatt’s comprehensive refresh.
The renovation adds another bright spot to development on the south side of Lady Bird Lake.
In 2019, Austin developer Perry Lorenz, the builder behind downtown’s 58-story The Independent tower, noted that land on the lake’s south side did not compare favorably with opportunities to the north. At that time, much of the downtown growth and skyline expansion was happening north of the lake.
In the post-COVID era, however, momentum shifted and the south bank began to attract serious developer interest.
In 2022, Stream Realty Partners completed RiverSouth, a 15-story office tower on First Street just a block from the Hyatt. Anchored by the Baker Botts law firm, the 372,000-square-foot building reached 98% occupancy within 18 months — a rapid lease-up that signaled strong demand.
Nearby, The Related Companies, a New York-based developer led by Stephen Ross, recently began construction on One Lady Bird Lake, an 18-story residential tower immediately adjacent to the Hyatt. The project occupies the site formerly used for Vonlane bus parking that served the hotel.
Related’s revised plans for One Lady Bird Lake call for roughly 576,000 square feet of residential space split between rental apartments and condominiums for sale, along with 10,415 square feet of restaurant space and 3,200 square feet of retail. Kohn Pedersen Fox is the architect, and the project is expected to be completed in late 2027 or 2028.
A few blocks away, South Congress Avenue has also seen substantial new development and retail, including Hotel Magdalena, a sustainable mass-timber property designed by Lake | Flato, underscoring the broader wave of investment on the city’s south side.
About a block from the Hyatt, plans are advancing to redevelop the former Austin American-Statesman campus — a 19-acre site envisioned to include up to six high-rise residential or office towers, a hotel, retail, and expanded green space along the lake. The newspaper has relocated to the suburbs, leaving behind a renowned newsroom and a memorable lakeside setting.
All of these projects contribute to a notable transformation south of downtown where, in earlier decades, the area’s most famous landmark might have been the Armadillo World Headquarters — a 1970s launching pad for Austin’s music scene.
With Related’s construction activity visible outside and the hotel’s refreshed interiors gleaming inside, Donahoe expressed enthusiasm about the transformation unveiled recently. New restaurants and menus are open, and a 50-foot indoor-outdoor bar positioned just steps from the lake’s edge adds a distinctive hospitality feature. The hotel’s 45,000 square feet of meeting space has been upgraded, and guest rooms redesigned by Ealain Studios are ready for guests.
“This transformation marks our new era for this hotel,” Donahoe said. “We recognize that Austin is now a global hub for business, creativity, and innovation. This is our answer to all of that.”
Perched on the waterfront, the Hyatt long offered a premier vantage point to watch a decade of rapid construction on the lake’s north shore, including the 35-story tower designed by Pelli Clarke Pelli and developed for Google by Trammell Crow.
Now the Hyatt is no longer only an observer. As 2026 begins, the Hyatt Regency Austin has embraced a new chapter, and the south side of Lady Bird Lake is positioned for continued growth and activity.
Historical Fact: Actor Matthew McConaughey, while a student at the University of Texas, had a career-changing encounter at the Hyatt Austin. McConaughey recounts in his memoir Greenlights that he was chatting at the hotel bar on the 17th floor when he met a casting director for Richard Linklater’s 1993 film Dazed and Confused. Sharing a mutual interest in golf and vodka & tonic, McConaughey received the casting director’s card, later auditioned, and delivered the now-famous three words: “Alright, alright, alright.”
*Footnote: Anecdote referenced on page 104 of McConaughey’s Greenlights memoir.
Dec. 25, 2025 Realty News Report Copyright 2025
Hyatt images Courtesy: Hyatt Regency Austin
Photo credit: One Lady Bird Lake construction site by Realty News Report. Copyright 2025.
File: Lessons Learned: The Transformation of a Hyatt Regency, Austin, Lady Bird Lake