DC Partners is building a 22-acre mixed-use development dubbed the Meuse with a hotel and 73,200 square feet of upscale shops, restaurants and tasting rooms in Fredericksburg.
DC Partners
Beyond the grapevines of the Texas Hill Country, there are miles of undeveloped land ripe for the picking.
It was just a year ago that Fredericksburg saw the opening of the Albert Hotel, its first full-service luxury hotel. But with the region drawing more than 5 million visitors a year, lodging developers are flocking to the area. They’re setting their sights on Fredericksburg, the center of the Texas wine country with more than 50 wineries, tasting rooms and proximity to Austin and San Antonio.
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Though the area’s lodging scene has long been dominated by short-term rentals, bed-and-breakfasts and boutique stays, the once-quaint German town is in the midst of an upgrade. From now through 2028, seven hospitality projects are set to add more than 760 rooms.
READ MORE: Albert Hotel, Fredericksburg’s first luxury hotel, opens after a long, troubled gestation
“The area has become quite popular, not only based on the number of homes popping up but also just in general,” said Colin Sherman, director of hospitality analytics at commercial real estate data firm CoStar. “They’re seeing a lot more demand out there, likely related to the wine culture they’ve developed, and hotels are noticing.”
At least two of the upcoming projects in Fredericksburg will be luxury hotels, including from big-name brands like Waldorf Astoria and Kimpton. There are also a handful of extended-stay hotels opening in the area from brands including Hilton and Marriott.
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In 2027, Waldorf Astoria Hotels & Resorts is opening its first-ever Texas location in Fredericksburg with 60 hotel rooms and suites and 87 villas and private residences.
A rendering of the Waldorf Astoria Texas Hill Country, which will be the luxury hotel brand’s first location in Texas.
Rendering courtesy of Hilton Hotels & Resorts
“Fredericksburg embodies the blend of culture, culinary excellence and natural beauty that Waldorf Astoria guests expect, reinforcing the brand’s commitment to providing guests with a distinct sense of place,” said Amy King, vice president of luxury and mixed-use development for Hilton, Waldorf Astoria’s parent company. “It’s a destination with national appeal and we felt it was the perfect stage for the brand’s Texas debut.”
A rendering of the Waldorf Astoria Texas Hill Country and Waldorf Astoria Residences Texas Hill Country, a resort and private homes that are slated to open in Fredericksburg in 2027.
Rendering courtesy of Hilton Hotels & Resorts
A rendering of the Waldorf Astoria Texas Hill Country, which will feature 60 hotel rooms and suites and 87 villas and private residences.
Rendering courtesy of Hilton Hotels & Resorts
A rendering depicting plans for the development planned by CB Wine Tourism near Fredericksburg.
Rendering courtesy of CB Wine Tourism
The Waldorf Astoria will be less than a mile from downtown Fredericksburg and feature five restaurants offering fare ranging from fine dining to casual concepts, including one from chef Dominique Crenn, the only female chef in the United States to attain three Michelin stars. The resort will also feature a 16,000-square-foot spa and fitness center and two resort-style pools.
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King said the brand will provide some diversity for Hill Country travelers looking for an elevated experience outside of short-term rentals.
“We believe short-term rentals serve a different purpose, catering to a distinct customer and stay type that complements what a hotel provides,” she said.
‘A new standard’
Hilton Hotels & Resorts has partnered with Wine Country Hospitality Partners LLC to manage the resort. The group is a collaboration between prominent developers Mark Harmon, Robert Radovan and Tim Sparapani.
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Harmon is founder of Auberge Resorts Collection, a luxury hospitality developer and operator with 27 properties worldwide, including Auberge du Soleil in Napa Valley, the most visited wine region in the United States. Radovan is the founding partner of luxury hospitality development company Criswell Radovan and Sparapani is a lawyer and investor specializing in startups who previously served as director of public policy at Facebook and is a member of the board of directors for Coors Spirits Co.
MORE HOTEL NEWS: First Waldorf Astoria hotel, residences in Texas to be built in Fredericksburg
“Wine Country Hospitality Partners LLC shares Hilton’s vision for Fredericksburg’s future and the exceptional experience we aim to deliver to guests, residents and Texans alike,” King said. “Together, we’re creating something that honors the region while setting a new standard in hospitality.”
A rendering shows Kimpton Fredericksburg, a new luxury hotel slated to open in 2027.
Rendering courtesy of IHG Hotels & Resorts
Kimpton, owned by IHG Hotels & Resorts, is also poised to open an upscale destination in 2027 with 210 rooms, a full-service restaurant and bar, a 10,000-square-foot pool and deck, fitness center and cafe. There will also be 18,500 square feet of indoor/outdoor event space for weddings, celebrations, local events and corporate retreats. It will be the brand’s fourth Texas location.
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Kimpton Fredericksburg will be part of the Meuse, a new 22-acre mixed-use development from Houston-based real estate firm DC Partners. The group, which has built luxury housing and offices in urban neighborhoods in Houston and San Antonio, hopes to capitalize on Fredericksburg’s tourism industry.
Kimpton’s ‘new option’
“With the boom of Airbnbs, we wanted to provide a new option for people who are looking for that full-service experience,” said Acho Azuike, DC Partners’ chief operating officer and managing director. “The Kimpton brand allows us to mold the design to fit the market it represents. Our goal with the design is to make it appear as if it’s always been there. We worked carefully with the city for a long time and put together something that we can be proud of.”
The Meuse, named after Fredericksburg founder John Muesebach, will feature 73,200 square feet of upscale shops, restaurants and tasting rooms at U.S. 290 and U.S. 87 at one end of Main Street. DC Partners has already signed upscale brands Lucchese Bootmaker and Padre’s Wine Co., a Houston wine bar, to join the project.
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The city had issued a request for proposals for a hotel and conference center in 2022, piquing DC Partners’ initial interest. Fredericksburg voted against tax rebates for the project but DC Partners decided to proceed anyway. The Fredericksburg Convention and Visitor Bureau said previously that the development could help the city increase midweek visitation.
“We knew if the city was putting out an RFP for this, there really is a demand for it,” said Azuike. “There’s only so much wine people are going to drink, so the Meuse will essentially be an extension of Main Street with curated retailers.”
Renderings show the Meuse, a mixed-use development DC Partners plans to build in Fredericksburg.
Rendering courtesy of Merriman Anderson Architects
In addition to The Meuse, family-owned real estate firm Fredericksburg Development Inc. and Heirloom & Co., a real estate investment advisory firm, are developing custom houses, apartments, a high-end resort hotel, parks, trails and shops about 2.5 miles south of downtown. LB Development is building shops, restaurants and an expansive promenade along Luckenbach Road off U.S. 290.
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MORE HILL COUNTRY NEWS: Fredericksburg’s Main Street adding luxury shops, restaurants and hotel
Querétaro, Mexico-based CB Wine Tourism also plans to build luxury houses, a boutique hotel, restaurants and other amenities surrounded by vineyards on about 215 acres at 576 Young Ranch Road along U.S. 290 between Fredericksburg and Johnson City.
“Though it’s already booming, the potential for growth abounds,” Luis Miguel Correa, CEO of CB Wine Tourism, said in a statement when the development was announced in 2024. “For someone looking to be a part of this growing market, the chances to find a prime piece of property along the heart of the wine trail in the Texas Hill Country are dwindling.”
A rendering of the development planned by CB Wine Tourism on about 215 acres between Fredericksburg and Johnson City. It’s to include luxury houses, a boutique hotel, restaurants and other amenities surrounded by vineyards.
Rendering courtesy of CB Wine Tourism
With such high-end developments in place, Fredericksburg is ushering in a new era of luxury hospitality, retail and housing. CoStar’s Sherman said the departure from short-term rentals is tied to the revenue stream the area is seeing — and travelers looking for longer stays with built-in experiences.
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“It’s very telling when you see brands like Kimpton and Waldorf take notice of a city like that,” he said. “They’ve obviously done their research. They know who’s going out there. They know where money is being spent, so they’re seeing that opportunity to not only create a great hotel but also give travelers that true Hill Country experience, and that’s where luxury really excels.”
Short-term rentals
Fredericksburg has already seen an explosion of short-term rentals and unique getaways like yurts, treehouses and teepees in recent years. AirDNA, which tracks Airbnb and Vrbo rentals, shows the area has more than 3,215 listings.
Short-term rentals have seen positive demand since 2024, with average monthly growth rates of 2% to 6% each month, according to CoStar.
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“For October alone, we’ve seen demand grow about 5% over their 12-month average,” Sherman said. “Looking at the 12-month average, they’re about at 5.3% through October, which is pretty sizable when you look at other metros.”
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The rise in demand has allowed short-term renters to raise rates. Such operations are generating an average annual revenue of $37,300 with an average daily rate of $348.90, according to AirDNA.
“We’re seeing revenue go up about 12% over the 12-month average and, of course, that equals profit,” Sherman said. “And if there’s profit to be made, that’s another attraction for hotels.”
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The Albert Hotel became the first full-service, luxury hotel to open in Fredericksburg when it debuted in 2025.
Richard A Marini/San Antonio Express-News
Until the Albert opened as the first full-service hotel last year, there hadn’t been a new hotel in the area for seven years. There are about 19 limited-service hotels and motels in the area, including a Holiday Inn Express, Best Western Plus and La Quinta Inn & Suites.
“Tourists aren’t just looking for a one-night or two-night visit and then going home,” Sherman said. “They’re looking for that experience, and if you can tie in that experience of the viniculture out there with the history of Texas, and the Hill Country landscape, that will drive even more demand.”
In addition to luxury destinations, the Hill Country area is getting a mix of name-brand extended-stay options such as Hilton’s upcoming 161-room Home2Suites and 94-room Homewood Suites. Marriott is also planning a 76-room TownePlace Suites and a 99-room SpringHill Suites.
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And California-based AutoCamp, a hotel company that rents Airstream trailers for glamping experiences, is building a Hill Country site for 2026.
“While branded supply is growing, competition from short-term rentals will continue to influence pricing and compression nights, particularly during peak wine and event tourism seasons,” Sherman said.
Ripe for the picking
The Texas Hill Country wine region spans 9 million acres, earning it the title as the second-largest wine region in the nation, according to the Fredericksburg Convention & Visitor Bureau. The area is home to more than 120 wineries, including popular pioneers such as Becker Vineyards and William Chris Vineyards in Hye, 20 miles west of Fredericksburg. It was ranked No. 31 on William Reed’s World’s 50 Best Vineyards list in 2025.
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Rows of grapevines at Becker Vineyards in Fredericksburg, Texas, in 2023. The Hill Country area, which sees two million visitors annually, has multiple hotel projects in development through 2030.
Sam Owens/Staff photographer
The region’s boom began in the 1970s and ’80s, largely driven by university research that identified the area’s climate and soil as a suitable foundation for grapes. In 1991, the Texas Hill Country was legally designated an American Viticultural Area, which means it’s recognized by the Alcohol and Tobacco Tax and Trade Bureau as a region with unique geographic, climatic and soil characteristics that influence grape growing and wine flavor. It’s one of eight in Texas.
READ MORE: Project with winery, hotel moves forward in Hill Country town
Fredericksburg’s warm climate is beneficial for ripening while the cool nights help grapes develop acidity. The region’s limestone-rich soil and ample sunshine are well-suited for longer growing seasons and attractive for Mediterranean grapes that typically produce Tempranillo, Syrah, Albarino, Cabernet Sauvignon and Zinfandel wines.
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In 2025, the Texas wine industry contributed $24.39 billion in economic impact to the state, a nearly 20% increase from 2022, according to WineAmerica, the national association of American wineries. While the Lone Star industry rivals regions in California, Oregon, Washington and New York, it ranks second in terms of economic impact behind only California.
“The Hill Country is very popular as a staycation for many San Antonians and Austinites,” Sherman said. “You can drive an hour, feel like you’re in a completely different place, not spend a ton of money, get away for a little while, enjoy that experience, and then come back all within an hour.”