Woodlands Township assesses luxury hotel feasibility

**The Woodlands Township Weighs Future of Luxury Hospitality Amidst Economic Growth Push**

THE WOODLANDS, TX – The Woodlands Township is advancing its exploration into the viability of introducing a high-end, full-service luxury hotel, commissioning a comprehensive study to determine if such an establishment could significantly elevate the area’s economic landscape and attract a new tier of visitor.

In December 2023, the Township board unanimously approved an $89,000 expenditure for a market demand and feasibility study conducted by AECOM, a globally recognized infrastructure consulting firm. The study’s primary objective is to ascertain whether there is sufficient demand to support a 4- or 5-star hotel, featuring 200 to 300 rooms, upscale dining and bar options, substantial meeting and convention facilities, a spa, and other premium amenities.

The impetus behind this initiative stems from a belief among some local leaders that The Woodlands may be missing out on lucrative high-end conventions, major corporate events, and luxury leisure travelers due to the absence of a truly top-tier, luxury hotel experience. While The Woodlands boasts a robust hospitality sector, including well-regarded properties like The Westin at The Woodlands, Hyatt Centric, Embassy Suites by Hilton, and The Woodlands Resort & Conference Center (which underwent significant renovations in the past decade under Howard Hughes Corp. ownership), the discussion centers on a distinct level of luxury.

Former Township board member Gordy Bunch has been a vocal proponent of the idea for several years, viewing a luxury hotel as a critical component for fostering further economic growth and ensuring local dollars remain within the community. “We have a fantastic array of hotels that serve our community well,” Bunch previously stated, “but there’s a segment of the market, particularly for high-profile corporate events and discerning travelers, that we believe could be better served by a truly world-class luxury option. This isn’t about competing with existing businesses, but expanding our overall appeal.”

Township Chairman Ann Snyder underscored the importance of the independent AECOM study, emphasizing the board’s commitment to “getting the facts” before any potential advancement. “Our goal is to understand the market without negatively impacting our existing businesses, which are vital to our local economy,” Snyder commented. “This study provides us with objective data to make informed decisions about our community’s future hospitality needs.”

AECOM’s initial scope of work included assessing prime potential locations, with a particular focus on the downtown Woodlands and Waterway Square area due to its walkability and proximity to existing attractions, retail, and entertainment options.

The findings of the AECOM study were presented to the Township board in March 2024, though specific details of the presentation have not yet been publicly detailed. While the Township isn’t looking to finance or construct a new hotel itself, the study is intended to provide critical data that could attract private developers.

Board member John Nicks, who supported the study, acknowledged the “hefty challenges” inherent in building and operating a new full-service hotel. These challenges typically include significant upfront capital investment, securing suitable land in a developed area, navigating current construction costs, and ensuring long-term profitability in a competitive market. The board aims to determine if a market gap exists that a private developer could successfully fill, potentially enhancing The Woodlands’ standing as a premier destination for both business and leisure.

Further discussions regarding the AECOM findings and potential next steps are expected at upcoming Township board meetings as leaders evaluate the long-term strategic implications of such a development.