Lakeway Council approves $2M HOT grant for Lakeway Resort renovation

The Lakeway City Council on July 20 unanimously approved a $2 million hotel‑occupancy‑tax (HOT) grant to Trestle Studios to support renovations at the Lakeway Resort and Spa.

Assistant city staff described the request and confirmed the project qualifies under state HOT rules for historic rehabilitation, signage and marketing. During the presentation, the assistant city manager said staff had reviewed eligibility with the Texas Hotel Lodging Association and that the applicants proposed a phased payout over July 2026–2028 to align disbursements with construction milestones.

Bridgette Summers, chief investment officer for Trestle Studios, told council the company plans a phased, one‑year renovation that will not close the hotel and that the owners expect to invest roughly $29 million in the property. "We're gonna take about a year to plan the renovation... My team will take over operations in September of this year," Summers said, adding the project aims to reposition the property and raise the average daily rate from about $200 to $300.

Council members pressed applicants on timing, the potential revenue dip during renovation and whether required variances could block work. Summers said some facade and mechanical work must be addressed immediately and that the team had underwritten modest near‑term revenue assumptions. The council ultimately voted to approve the hotel grant as presented.

Next steps: the city will implement the approved HOT disbursement schedule and monitor project milestones and applicant reporting as required by the grant agreement.