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How Austin Hotels Are Preparing for the Convention Center's Closure Next Year

Instead of citywides, expect properties to tout campus-style "mini-wides"—similar to how the city's famous South by Southwest festival operates.

The AT&T Hotel and Conference Center is located on The University of Texas at Austin campus.
The AT&T Hotel and Conference Center is located on The University of Texas at Austin campus.
Photo: Courtesy of AT&T Hotel and Conference Center

This coming spring, the city of Austin, Texas, will officially begin work on an ambitious redevelopment project that will close down its convention center for five years. Yes, completely close instead of partially close.

Why does it have to completely close? Even though the redevelopment project clocks in at $1.6 billion, it will not expand the center outside its current footprint in downtown Austin; instead, it will be built higher, which means foundation reinforcement is required.

In an era of compressed timelines and demand outweighing supply when it comes to meeting space, this closure could spell disaster—but a certain collection of hotels in Austin is working hard to keep the city relevant, from a meetings perspective, until the center reopens. 

"It's unprecedented, what's going to happen in Austin," says Josh Delgado, director of sales and marketing for the AT&T Hotel and Convention Center in Austin. "As far as we know, there's no other city [redeveloping its convention center] the way we're going to do it, which is taking it out of commission, demolishing it, then building it back up twice the size." (Even though Austin is one of the largest cities in the U.S., its convention center right now is the 59th largest in the country.)

The AT&T Hotel, located on The University of Texas at Austin campus, generates about 60% of its business from group bookings. To mitigate that void in room nights from the convention center closure, the hotel is combining forces with other properties in what's called the University Hotel Collection, which was established in 2018 and comprises eight hotels within a four-block radius in downtown Austin that total 1,240 hotel rooms.

"We're leaning into this campus-style approach to events, like how South by Southwest operates, where you can spread out using multiple facilities," Delgado says. "With the University Hotel Collection, we are the anchor with 85,000 square feet of event space."

Being part of The University of Texas also means groups can utilize its many resources, including academic buildings, museums, and even speakers. 

"One of the last conferences that booked at our property used overflow space at a University Collection Hotel, and then they also booked their reception at the Blanton Museum of Art, which is owned by the university, right down the street, and is an incredibly cool, unique space," Delgado says. "There was also a tour of the Harry Ransom Center, which is a museum on videography and film. It's so unique to have a university lean into travel and tourism so much."

Once the center closes after SXSW in spring 2025, expect downtown Austin hotels to tout campus-style "mini-wides" instead of citywides. It'll be an interesting next five years for the city, but Delgado is confident these strategies will keep Austin on top. His property is even undergoing a $30 million renovation, which will add a brand-new junior ballroom. It will be the property's third ballroom and will be able to accommodate 225 to 300 attendees.

"The Collection has been hosting large events for years, and South by Southwest has been doing this model for years," Delgado says. "We can do this."