Historic Medical Arts Building set for hotel revival in downtown Galveston

A long-vacant office building in downtown Galveston is poised for a significant makeover, as developers unveil plans to transform the historic Medical Arts Building into a boutique hotel within Hilton’s Tapestry Collection.

The Itex Group, a real estate firm located in Port Arthur with additional offices in Houston, is set to commence construction on the 11-story Medical Arts Building at 302 Moody Ave. The Itex Group, a real estate firm located in Port Arthur with additional offices in Houston, is set to commence construction on the 11-story Medical Arts Building at 302 Moody Ave. in February, pending the final permits from the city, according to company officials.

A long-dormant building is set to undergo redevelopment, transforming into a 120-room boutique hotel named The Quay. The proposal features a combination of suites and uniquely designed guest rooms, complemented by a first-floor restaurant and bar aimed at enlivening the street level in the vibrant downtown Galveston area.

“It’s been a long time coming,” stated Chris Akbari, CEO of the Itex Group, in remarks to the Houston Business Journal, as he confirmed the construction timeline pending the finalization of permits.

The hotel is set to join Hilton’s Tapestry Collection, a distinguished group of independent, upscale boutique hotels that highlight local charm and historic significance. Driftwood Hospitality Management, headquartered in Florida, has been chosen to oversee the management of the Galveston property upon its opening.

Akbari noted that the Tapestry brand aligns seamlessly with the redevelopment, considering the building’s historical significance and its strategic position close to the Strand and Galveston’s active waterfront. “This building merits a purpose that honors its history while ensuring a sustainable future,” he stated.

The Medical Arts Building, a prominent fixture in downtown Galveston, has historically been seen as a redevelopment hurdle, attributed to its age, size, and overall condition. City officials and preservation supporters have highlighted the building as a significant chance for revitalization in the island’s urban center.

In the Greater Houston area, Hilton’s Tapestry Collection features just two other hotels: The Sam Houston Hotel, located in downtown Houston and The Chifley Houston situated in the Galleria area. The Galveston project signifies the brand's inaugural venture onto the island.

Although an official opening date remains unconfirmed, the redevelopment contributes to an expanding array of hotel and tourism investments in Galveston, reflecting a rising demand for distinctive lodging options in tandem with the growth of leisure travel.

The initiative marks a revitalized push for adaptive reuse in historic Texas downtowns, especially within coastal areas striving to harmonize preservation efforts with economic growth. No further information regarding construction expenses and funding has been revealed.

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