AC Hotel Waco — Photo by Marriott

SRH Hospitality Holdings LLC, a veteran developer of top-tier hospitality brands, and SkyWalker Property Partners LLC will break ground in mid-August on an AC Hotel by Marriott, the first full-service hotel to be developed in downtown Waco since the early 1980s.

The 182-key AC Hotel Waco is slated to deliver in spring 2023 in the prestigious Magnolia Silos District, which is a designated Qualified Opportunity Zone for investment purposes. To help make the project a reality, the city has partnered with SRH by providing project-related incentives exceeding $13.5 million over a 10-year period. The incentives are primarily self-fulfilling and will be generated by the AC Hotel.

Centrally located downtown, the 2.5-acre infill site is bordered by Mary Avenue, which is envisioned as the city's "festival street," South 6th Street and Jackson Avenue. The SRH project will be located directly across the street from Chip and Joanna Gaines' Magnolia Market at the Silos, less than seven-tenths of a mile from Baylor University and close to several major mixed-use developments that are now underway or in planning stages.

The five-story AC Hotel, totaling 107,700 sf, will feature well-appointed, classic modern suites and a 16,900-sf street-level conference center with break-out rooms and adjoining 4,000-sf poolside terrace. Other amenities are a 7,700-sf ballroom divisible into five salons with ceiling heights of 20 to 22 feet, the highest in Waco's hospitality inventory; signature restaurant and bar with indoor and outdoor seating; club-level fitness center; and 332-space parking garage. SRH also plans to construct an adjacent two-story, 17,500-sf commercial/retail building with a rooftop terrace.

Rogers-O'Brien Construction Co. is the general contractor. NORR is the architect of record. Interiors were designed by Design Force Corp. and Wild Muse Interiors. Happy State Bank and Petros PACE Finance provided construction financing.

The AC Hotel Waco is SRH Hospitality's sixth project in Texas. The Dallas-based development group was founded in 2013 by Seneca Investments, Rochester Real Estate and Harrell Hospitality Group. SkyWalker Property Partners has joined the partnership as a sponsor in the Waco project.

AC Hotel Waco will be positioned within three blocks of the city's convention center, fueling the potential to provide overflow meeting space, host related events and offer additional full-service amenities for convention-goers and tourists alike. The city's hotel inventory predominately is limited/select service and extended stay, including seven recently completed or under-construction projects.