David Contis, president of Indiana-based owner Simon Malls, said Wednesday that the proposed tower, with 225 hotel units and 75 to 100 condominiums, would be the culmination of an ongoing redevelopment program at the 46-year-old shopping mecca, The Galleria Mall. It’s planned on the site of Macy’s. They plan to build an attached 30-story luxury hotel and residential tower despite increasing competition for high-end retail and a slowing energy economy that has dampened demand for high-end lodging across the city.
Construction on the new Galleria hotel-condo project is expected to begin next year and take two years to complete. Contis said the company is in negotiations with several hotel brands.
The announcement of the new Galleria project also comes as the hotel market in downtown Houston is working to wrap up several projects in time for the city to host next year’s Super Bowl. Two high-end hotels, the Marriott Marquis and the Hotel Alessandra, are under construction near the George R. Brown Convention Center, and major renovations are underway at the Four Seasons and the Crowne Plaza Hotel.