An Austin tie

Prominent Houston hotel taken over by national group: $4.5 million in updatesplanned

Hotel Derek, a 314-room independent boutique hotel in the Galleria area, has been sold to a group affiliated with the Hotel Driskill in Austin.

The 14-story Hotel Derek is located at 2525 West Loop South and Westheimer Road, one of the most prominent intersections in Houston.

Lowe Enterprises Investors (LEI) has acquired the Hotel Derek on behalf of a national hotel investment venture LEI formed last year with The Guardian Life Insurance Company of America and a subsidiary of Allstate Insurance Co. An LEI affiliate, Destination Hotels & Resorts, will take over the hotel management.

LEI plans to spend $4.5 million in the property to refresh the guest rooms and common areas and enhance the meeting space, including updating the technology. The company does not expect to change the hotel’s name or to affiliate with a big national chain.

LEI plans to spend $4.5 million in the property to refresh the guest rooms and common areas and enhance the meeting space, including updating the technology.

“This is a rare boutique property in a market that is dominated by branded hotels. Its convenient location and modern style coupled with its meeting space options make the Hotel Derek an ideal choice for groups as well as business and leisure travelers,” noted Russell Munn, senior vice president of LEI.

LEI also owns, on behalf of an investment client, the Hotel Driskill in Austin. Destination Hotels & Resorts is known for operating premier boutique hotel properties, including a number of hotels in Hawaii and the ski areas of Colorado.

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warehouses to wow

New development with 1-acre green space coming to Memorial City area

Courtesy of Michael Hsu Office of Architecture

Greenside will feature a one-acre greenspace.

The rapidly-growing area around Memorial City Mall will soon add another new development. Called Greenside, it will transform a group of industrial buildings into a mix of restaurant, retail, and other family-friendly businesses.

Located just north of Memorial City Mall at 1085 Gessner Rd., Greenside unites Memorial City owner Metronational with Radom Capital, the Houston-based developer behind M-K-T Heights, the Montrose Collective, and the ongoing redevelopment of the historic Tower Theater. They’ve retained the Texas-based Michael Hsu Office of Architecture to transform a group of industrial warehouses into 35,000-square-feet of new businesses.

Plans call for a one-acre green space that includes a mix of seating options and strings of lights. Walkways will connect Greenside with nearby restaurants and bars such as Torchy’s Taco, Mia’s Table, and Kirby Ice House.

“The community continues to ask for more unique retail and restaurant offerings, and with the help of Radom Capital and Michael Hsu, we will deliver a one-of-a-kind offering to the Memorial City area with a great outdoor experience,” MetroNational president and CEO Jason Johnson said in a statement. “This project represents MetroNational’s commitment to creating spaces that foster community and deliver long-term value for Memorial City and the surrounding neighborhoods.”

Construction is expected to begin in the spring. If everything goes according to schedule, the first tenants could open in summer 2026.

The past year has seen a number of new additions to the Memorial City area. They include Texas comfort food restaurant Haywire, Detroit-style pizzeria Via 313, live fire restaurant Credence, and a second location of Montrose barbecue favorite The Pit Room. Next year, new locations of The Burger Joint and the Taco Stand will open nearby at 1016 Gessner Rd.

memorial city greenside openings