Lincoln and Kairoi Residential Open 252-Room 1 Hotel Austin Inside Texas' Tallest Tower
Lincoln and Kairoi Residential have opened 1 Hotel Austin, a 252-room luxury hotel set within Waterline, a 74-story mixed-use tower at 98 Red River St. in downtown Austin. The hotel, which debuted Sept. 17, 2026, is the first Texas property for 1 Hotels, the sustainability-focused lifestyle brand founded by Barry Sternlicht.
The Waterline tower, which rises 1,022 feet, is the tallest building in Texas. The hotel occupies 13 floors of the structure and includes 60 suites among its 252 keys. The broader development, situated on approximately 3.3 acres near Waller Creek and Lady Bird Lake at the edge of the Rainey Street District, also encompasses 352 luxury apartments and roughly 700,000 square feet of office space.
A Mixed-Use Milestone for Lincoln and Kairoi Residential
Lincoln and Kairoi Residential announced Waterline in September 2022 and broke ground the same year. The hotel opening represents the first major public-facing milestone for a project that has been in planning since 2018. The hotel's debut precedes full stabilization of the office and residential components, with the hotel and its amenities positioned to establish the tower as an active destination during the lease-up period.
The project's estimated development cost is approximately $520 million, based on a Texas Department of Licensing and Regulation filing. Architecture is by Kohn Pedersen Fox, with HKS Architects serving as architect of record, interiors by Studio MAI in collaboration with the Starwood Hotels design team, and landscape design by TBG Partners.
"Opening in Austin is a milestone for 1 Hotels," said Barry Sternlicht, Founder of 1 Hotels and Chairman of Starwood Hotels. "Austin is a remarkable city, as it maintains its great traditions while embracing change and acting as a poster child for the brightest future. Few cities have been able to grow with the confidence Austin has while holding onto the qualities that make it special: its creativity, independent spirit, welcoming character, and extraordinary natural beauty. 1 Hotels' DNA is about celebrating nature and healthy and sustainable living; this location is perfect for us — set in the heart of the city, alongside Waller Creek, overlooking the Waterloo Greenway, and steps from the trail around Lady Bird Lake."
Hotel Design and Programming
The hotel's interiors draw on natural materials including locally quarried limestone, oak, and reclaimed wood salvaged from historic American structures. More than 4,000 plants representing over 30 species, along with a living plant wall, bring Central Texas landscapes into the building's interior. The lobby features soaring wood ceilings and floor-to-ceiling windows, with seating arranged to encourage guests to linger rather than pass through.
The 252 accommodations, including 60 suites, feature woven textiles, handcrafted textures, stone vanities, and floor-to-ceiling windows framing views of Lady Bird Lake, Waller Creek, or the downtown skyline. In-room amenities include filtered water taps, reusable glassware crafted from recycled wine bottles, yoga mats, and Bamford bath products made with organic ingredients. Minibars are stocked with locally sourced items including chocolates from Desnudo, snacks from Austin Pretzel Company, Wildflower Caramels, and Tamalitoz treats.
"At 1 Hotel Austin, we're bringing a new energy to the city, one rooted in community, wellness, sustainability, and unforgettable experiences," said Raul Leal, CEO of Starwood Hotels. "We envision more than a hotel. We're creating a welcoming gathering place where travelers and locals come together to connect, enjoy exceptional food and beverage experiences, and celebrate the vibrant spirit and natural beauty that make Austin so special."
Food, Beverage, and Wellness Offerings
The hotel includes three food and beverage venues. Alteño is Austin's first restaurant from James Beard Award nominee Chef Johnny Curiel, whose Denver restaurants, Alma Fonda Fina and Mezcaleria Alma, both hold Michelin stars. The campestre-style restaurant is rooted in the flavors of the Jalisco Highlands and features fire-cooked meats, seafood-forward plates, and one of the city's largest selections of distilled Mexican spirits, including more than 40 mezcals. The bar also carries additive-free tequilas, raicilla, sotol, and ancient corn whiskey.
"Opening a restaurant in Austin has been a dream for a long time," said Curiel. "The meals I remember most from growing up were spent around the fire with family and friends, sharing food and staying at the table long after we had finished eating. At Alteño, I want guests to feel like they have been welcomed into our home, where plates are passed, drinks are poured, and everyone has a place at the table."
At street level, Neighbors Café and Wine Bar — the first Neighbors wine bar in the 1 Hotels collection — opens to both the lobby and the surrounding neighborhood. The beverage menu centers on Mediterranean wines, including biodynamic, minimal-intervention, and sustainably farmed producers, alongside cocktails and a recurring events calendar. Watr, a rooftop restaurant and bar concept that made its debut at 1 Hotel South Beach, arrives at 1 Hotel Austin as its second location, perched 16 stories above the city with views of the skyline and Lady Bird Lake. The rooftop venue features Japanese-inspired cuisine, a low-waste cocktail program, and a social calendar that includes DJ sets and monthly Full Moon parties.
A dedicated wellness floor includes a fitness center with an outdoor terrace, a yoga studio, and Bamford Wellness Spa, which was founded by Carole Bamford. The spa features six private treatment rooms, a couples suite with a steam shower, locker rooms, relaxation areas, and a retail boutique. Treatments include Bamford's signature rituals, personalized facials, infrared sauna sessions, soundwave therapy, and red light treatments. The hotel also offers a Sunday run club around Lady Bird Lake and provides first-time guests with a complimentary three-day pass to Monroe, an Austin private members club.
Market Context and Office Leasing Outlook
The hotel's opening positions Waterline as an active destination at the intersection of downtown Austin, the Rainey Street District, Waller Creek, and the Waterloo Greenway — a corridor that has been undergoing significant transformation from a flood-prone and underutilized area into a major public-realm and mixed-use district.
The office component of Waterline presents a substantial leasing challenge. The tower's roughly 700,000 square feet of office space spans approximately 26 to 27 floors, and around 24 office floors were still being marketed for lease around the time of the hotel's opening. The office space must compete for tenants in a market where demand has become more selective, with companies generally favoring newer, highly amenitized buildings. Waterline's location, skyline visibility, and proximity to downtown amenities are among the factors the developers are using to differentiate the offering.
The project's 352 apartments, which occupy the top 33 floors of the tower, provide a residential revenue stream alongside hotel and office income. The residences share the same lake, creek, and skyline views that support the hotel's positioning and offer direct access to the Waterloo Greenway and downtown Austin.
The hotel is located at 98 Red River St., Austin, Texas 78701, adjacent to the Waterloo Greenway and the Ann and Roy Butler Hike-and-Bike Trail around Lady Bird Lake.
Sources
PR Newswire: Now Open: 1 Hotel Austin — a Texas-Sized Urban Retreat