San Marcos Downtown Area Plan

CHAPTER 4: RECOMMENDATIONS

The addition of a hotel downtown would provide economic benefits to downtown and provide an additional lodging option for visitors to San Marcos. A downtown hotel would help diversify the consumer base by adding activity downtown throughout the day to businesses and restaurants. Key elements that should be incorporated include meeting/conference/event space and a full-service restaurant. A partnership with Texas State University should be considered in order to achieve mutually beneficial goals. BUILDING FORM & INFILL DEVELOPMENT DOWNTOWN HOTEL (Recommendation B.4)

Existing Conditions

Market Conditions · The hotel room inventory in San Marcos has increased by 50% in the past decade with the city attracting 739 rooms. · Average daily rate ($125 in July 2022) for hotels in San Marcos have rebounded from COVID-19 Pandemic and are the highest levels the city’s hotels have achieved. · Occupancy rates for the summer months of 2022 were at or above 70% indicating demand.

· The downtown area currently has no hotels as most hotel options are along I-35. · San Marcos also has a limited amount of event and conference space associated with hotels and a limited number of luxury/full-service hotel options. · With over 32,000 square feet of event space, the Embassy Suites San Marcos Hotel and Conference Center is the only hotel with a sizable amount of event space (i.e. over 3,500 square feet) for events and meetings.

Downtown Hotel History San Marcos previously had a hotel in the Downtown Core. The Hofeinz Hotel was located across from Sean Patrick’s on E San Antonio Street. Part of the building still standards today.

“Hofheinz Hotel 1906” Photo Credit: San Marcos Public Library

Existing building today (2023)

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SAN MARCOS DOWNTOWN AREA PLAN