Bunkhouse starts its first Houston hotel

A developer known for Texas chic boutique hotels has embarked on its first Houston project.

Austin-based Bunkhouse started construction today on Hotel Saint Augustine — a 71-key, two-story hotel that will offer guests access to an event space, a restaurant and a bar, the Austin Business Journal reported. 

The site is adjacent to the Menil Collection, on Loretto Drive in Montrose. The Amar Lalvani-led Bunkhouse, which has delivered a number of high-profile hotels in Austin, including Hotel San Jose and Hotel Magdalena, expects to complete construction near the end of 2024. 

Marchbanks Company, a frequent collaborator with Bunkhouse, will build the structure. San Antonio-based Lake Flato Architects is the designer, and Post Company is at the helm of interiors. Ten Eyck Landscape Architects will design “the lush grounds and gardens throughout the property, along with winding pathways and outdoor spaces integrated around significant existing trees,” Bunkhouse told the outlet.

Hotel Saint Augustine marks the company’s seventh hotel in Texas. It has five in Austin, one in San Antonio and one in Salado. This will be the company’s first project in Houston, where hotel real estate is struggling.

As of March, Greater Houston had the lowest-ranked hotel market in the nation, according to a study by TREPP. Its average occupancy rate stood at about 53 percent, and one-third of hotels reported a decline in net cash flow growth. 

—Quinn Donoghue