A rendering of the main entrance to the Caravan Court Hotel opening in spring 2026 on Division Street in Arlington.
BOKA Powell
ARLINGTON
For decades, the Caravan Motor Hotel was a quirky landmark along Arlington’s Division Street, giving 1960s Las Vegas vibes with its mid-century architecture and palm-tree sign.
But in recent years, the two-story motor court lost its luster and became more of a symbol of the decline of a once-bustling corridor.
That’s about to change.
An Arlington entrepreneur and the Houston-based Valencia Hotel Group have invested tens of millions of dollars to redevelop the Caravan property as an upscale boutique hotel with 145 rooms, a restaurant with a world-champion chef and a rooftop bar with six-floor views of the city’s sports stadiums.
The city is hoping the new Caravan Court Hotel, at the corner of Division and North Collins streets, will be a catalyst for revitalizing the corridor just south of entertainment district. The hotel has a soft opening scheduled for May 15 and a full launch on June 1, just in time for the World Cup.
A rendering of the main entrance to the Caravan Court Hotel opening in spring 2026 on Division Street in Arlington. BOKA Powell
A rendering of the new Caravan Court Hotel’s six-floor tower along Division Street. The developer is preserving as much of the original sign as possible. The former Caravan Motor Hotel was built in the early 1960s. BOKA Powell
Property owner Sam Mahrouq said he and his partners have tried to preserve as much of the original 1961 motel’s “DNA” as possible. Division Street is part of the historic Bankhead Highway, which was the nation’s first transcontinental route when completed in the 1920s.
Division Street became known for its car dealerships, which is how Mahrouq — a UTA alum — got started in business. He ran a small but lucrative used car lot next to the Caravan and tried for years to buy the motel to raze and make room for more vehicles. By the time he succeeded in acquiring the property, he started to have a change of heart. The Caravan was iconic.
This 2007 file photo shows the former Caravan Motor Hotel at 908 E. Division St., built in 1961. The new upscale Caravan Court Hotel, opening in spring 2026, preserves some of the original structure and design but adds a six-story tower. MAX FAULKNER STAR-TELEGRAM
Over the years, Mahrouq’s ventures grew from auto sales to finance, insurance, technology, real estate and now hospitality. He also owns iKON Technologies, one of Arlington’s largest homegrown tech firms.
For the Caravan project, he partnered with Valencia Hotel Group, whose small collection of unique properties includes the Texican Court in Irving, Hotel Valencia Riverwalk in San Antonio, The George and Cavalry Court in College Station, and Cotton Court in Lubbock.
“I wanted to celebrate Arlington,” Mahrouq said Tuesday during the 2026 Real Estate Symposium at UT Arlington’s College of Business. “I came to Arlington when I was 18 years old, and I’m 58 now.
“Division Street has been good to me. And I really wanted to give back to the city,” Mahrouq said, calling the Caravan project his “legacy.”
The interior of the Elora Sky Club rooftop bar at the Caravan Court Hotel opening in spring 2026 in Arlington. BOKA Powell
Subtle details in the hotel design are tributes to Arlington history. For example, since Division Street was once automobile alley, the hotel’s headboards are burlwood, like vintage dashboards. Hotel furniture is reminiscent of car seats, and some light fixtures are shaped like headlamps.
The guest rooms at the Caravan Court Hotel in Arlington have an “Americana” nostalgia, including design cues that are reminiscent of the automobile showrooms that once lined Division Street. BOKA Powell
Mahrouq said the motel’s roadside sign with its three palm trees is still being refurbished, using what’s salvageable from the original.
The restaurant at Caravan Court Hotel
Preston Nguyen, a 22-year-old world-champion chef from Arlington, is running the show at the Caravan Court Hotel’s restaurant, which will be called The Vandy — an homage to former Mayor Tom Vandergriff.
Nguyen said he is getting close to finalizing his seasonal menu that he described as upscale American. The lobby floor’s courtyard space will have a martini lounge, he said.
Nguyen was named World Chef Champion at the 2025 World Food Championships, the same honor he earned in 2021 when he was just 18 years old. He also competed on Gordon Ramsay’s “Next Level Chef” in 2023.
Arlington native Preston Nguyen poses for “Next Level Chef”. FOX
The Caravan’s rooftop bar will be called Elora Sky Club with a Mediterranean menu. Mahrouq, who grew up in Jordan, said the “oasis” motif will reflect his heritage.
In 2024, the city of Arlington approved incentives for the project including a $3 million grant for site preparation, performance-based tax rebates and annual grants of up to $1 million to support the development for 10 years. Mahrouq called the incentives essential to making the numbers work on the roughly $50 million project.
The rooftop terrace at the Caravan Court Hotel opening in spring 2026 in Arlington. The views from the top of the sixth-floor hotel include AT&T Stadium. BOKA Powell
Construction crews working Tuesday, March 3, 2026, on a section of the original Caravan Motor Hotel that will open in spring 2026 as the new upscale Caravan Court Hotel. Matt Leclercq mleclercq@star-telegram.com
Fort Worth Star-Telegram
Matt Leclercq is senior managing editor at the Fort Worth Star-Telegram. He previously was an editor at USA Today in Washington, national news editor at Gatehouse Media in Austin, and executive editor of The Fayetteville (NC) Observer. He’s a New Orleans native.