The CBD hotel, next to the Austin Convention Center, could have an economic impact on the community of $1.8 billion over 10 years, according to a study conducted by Angelou Economic Advisors. The study was commissioned by the hotel's developers and released in conjunction with the topping-out ceremony.
The impact could be $558 million in the first year alone, according to Angelos Angelou, the principal chief economist of the Austin-based firm. A good chunk of that is from $379.6 million in one-time investment upfront investment in the hotel.
Local spending in wages and operations could total $720.9 million over 10 years, according to the study. That breaks down into $418.1 million in wages and $302.8 million in operations spending.
The 10-year impact on retail sales could be $218.1 million. The annual breakdown is about $11.9 million from direct retail spending and $9.8 million in indirect retail spending.
For restaurants and bars in the downtown area around the hotel and convention center, the 10-year impact could be $400.7 million, the Angelos study said.
The 31-story hotel is supposed to team with the convention center, which doubled its size to 881,000 sf of exhibition space, to draw bigger, more locally lucrative meetings to Austin. Hotel officials say early sales are running ahead of expectations.
Austin-based Faulkner USA is the project's development manager and general contractor. Hilton Hotels Corp. is the hotel's operator and manager. The Minneapolis-based Ellerbe Becket firm is the project's architect.
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