Dissatisfied guests at a Hilton Garden Inn in downtown Austin, Texas, have reviewed the hotel as “very run down” and “janky,” in reference to faulty elevators. One guest said the beds were “rock hard,” and another called the place “a complete nightmare from start to finish.”
That is a big reason the new owner decided to buy it.
The hotel is one of many around the U.S. that have languished for years in need of a refresh but whose operators have struggled to find the cash to pull off the renovations.
Now, as prices decline and the number of new hotels under construction dwindles, new owners are stepping in to buy rundown lodgings and whip them into shape.“It’s gonna be sparkling,” said Drew Bridges, an executive at JMI Realty, which bought the 254-key Austin hotel in June. The company paid about $100,000 per room, and plans to spend another $65,000 per room on renovations, including updates to the restaurant, meeting areas and lobby.
Hotel sales nationwide increased by 28% in the first two quarters of 2026, compared with the same quarters last year, according to data-provider MSCI. Sales are strongest in the luxury sector, but deals for middle tier, or so-called select service hotels, also have been rising from a 2024 low point, a report by JLL Research found.
