Holiday Inn Express is checking into fast-growing Lockhart with incentives deal

Holiday Inn Express is checking into Lockhart, thanks to an incentives deal.

The Lockhart City Council has approved up to $1.8 million in financial incentives for Lockhart Hospitality LLC to build a $10 million Holiday Inn Express & Suites.

The hotel will be located at the corner of City Line Road and San Antonio Street. The location is expected to create at least 14 full-time jobs.

The 40,000 square-foot site will have 90 guest rooms, exercise facility, business center, meeting area and spa. Its location, easily accessible from Texas 130 toll road, will make it an ideal stop for both business and leisure travelers, the City of Lockhart said.

Lockhart City Manager Steve Lewis said the deal reflects the city’s commitment to foster a dynamic business environment and strengthen Lockhart’s draw as a hub of tourism and commerce.

“The hospitality industry has contributed a great deal to Lockhart,” he said. “New developments like this reinforce what we are trying to accomplish: To transform Lockhart into a destination location for people who not only want to come have some great barbecue, but experience more of what Caldwell County offers.

"We want to stretch any day trips for regional tourism into overnight stays, boosting retail and food sales in Lockhart," Lewis said.

The Chapter 380 economic development agreement includes a five-year property tax reimbursement, starting at 85% in the first year and then decreasing to 50% by the fifth, for a maximum of $200,000. It also includes a 60% reimbursement of hotel taxes over a 10-year-period, or a maximum of $1.6 million.

The hotel is expected to be completed by December 2025.

What is fueling Lockhart's growth?

Lockhart is the county seat of Caldwell County, one of the fastest-growing counties in Texas.

The city has long been a popular day trip from Austin, with visitors drawn by its renowned barbecue venues and the landmark Caldwell County Courthouse, which sits in the center of town.

Now large-scale residential and industrial projects are driving a new wave of growth in Lockhart, located 30 miles southeast of Austin.

With a boom in migration to Texas, homebuilders and developers are taking notice of Lockhart's growth potential and are jumping in to invest in the area, as are a growing number of companies looking to start up, relocate or expand.

More: Housing development boom continues in Lockhart area

Among the real estate companies setting their sights on the region is Austin-based Red Oak Development Group. Red Oak has purchased 257 acres in the Lockhart area, where it plans to build a mixed-use, master-planned community to be between Callihan and Plant roads off Texas 80.

The previously undeveloped land is east of the Texas 130 toll road and west of Luling.

"Lockhart is an excellent option for people who want to live in a smaller town but still have access to all the amenities of a big city," said Tom Staub, CEO and managing principal at Red Oak, previously told the Statesman.

With the recent population boom in the Austin region, including many affluent newcomers, some developers have focused on building luxury housing to meet the demand, Staub said. But that has led to a lack of housing options within reach of working families and individuals, he said.

Meanwhile, Titan Development, a real estate development and investment firm, has started construction on the first speculative building at Lockhart 130 Industrial Park south of Austin.

Building 1 on the 45.1-acre site in Lockhart calls for 167,794 square feet of industrial space near several major highways between Austin and San Antonio, including Texas 130, Interstate 35 and Interstate 10.

The Lockhart 130 Industrial Park will have four buildings in all, with a total of 650,000 square feet of space. Construction on Building 1 is due to wrap up by the fourth quarter of this year.

"Central Texas communities are facing considerable growth and Lockhart is no exception," Lockhart Mayor Lew White said when Titan Development broke ground in February 2023.

The industrial park "opens more opportunities for prospective businesses to see what Lockhart has to offer and gives our community a competitive edge among our target industries, including auto parts, metal and electronic manufacturing, food and beverage processing, logistics and distribution, and pharmaceutical, medical supplies and medical device manufacturing."

This article originally appeared on Austin American-Statesman: Holiday Inn Express will receive up to $1.8M to build in Lockhart