New Heights Hotel Already Expanding, Market briefs

In Houston, The owners of Hotel Daphne, a brand-new boutique hotel in The Heights, are already planning an expansion to the stylish hostelry.

The 49-room hotel, a project by Bunkhouse Hotels of Austin and Wood Lane Partners of Houston, is located at 347 W. 20th Street at Ashland.

The five-story hotel, which reported its grand opening in early December, will receive a $15 million expansion in 2026, as stated by a filing with the Texas Department of Licensing and Regulation.

Ten two-story king suites will be added to Hotel Daphne along with event space, meeting room space, an event kitchen, a bar at the swimming pool and new pool terrace.

Work is scheduled to begin in April and construction is slated to take a year, the state filing says.

Hotel Daphne is the second Houston hotel for Bunkhouse Hotels following the opening of the Hotel Saint Augustine in Montrose in December of 2024. The 71-room, $57 million Saint Augustine, designed by Lake Flato, is located next to the Menil Collection museums. The Saint Augustine is home to chef-led restaurant called Perseid. Part of the Hyatt organization, Bunkhouse operates a collection of stylish, one-of-a-kind boutique hotels around the world.

Hotel Daphne, named after Daphne of Greek mythology, the daughter of river god Peneus, takes inspiration from the “architectural charm“ of the Heights, one of Houston’s oldest neighborhoods, as stated by a Bunkhouse statement.

Hotel Daphne was designed by Blanchard A+D of Massachusetts and Darwin Architecture in California. The white painted brick building features stepped parapets and steel windows. McDougald Steel of Houston handled landscape architecture.

Bunkhouse Hotels handled interiors, incorporating Arts and Crafts style into the design mixing custom and vintage décor. Artwork from the collection of Hotel Daphne co-owner, Bob Ackerley, director of Wood Lane Partners, will be displayed along with custom pieces by Austin/Los Angeles artist Alexandra Valenti.

Top Chef Terrence Gallivan at Hotel Daphne

Led by Executive Chef and two-time James Beard Award nominee Terrence Gallivan, Hypsi will initially open for dinner service. Gallivan, whose former restaurants include The Pass & Provisions and Elro, is set to feature Italian fare and cocktails a setting inspired by the private drinking clubs of The Heights’ bygone days. Diners will find dishes such as a Crispy Skin Vermillion Snapper with a fresh herb salsa verde, a Tableside Mozzarella Cart serving multiple types of cheeses, cocktails, Italian wine, and spritzes.

Hypsi’s design will blends “unexpected whimsy with comforting familiarity,” featuring an indoor fireplace with antique mantel, banquettes with psychedelic pillows, a bar with leather Cassina chairs, and a courtyard.