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Ares Expands Miami-Dade Industrial Portfolio With $108.7 Million Acquisition

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Historic Galveston Building to Become Chic Boutique Hotel

December 17, 2025
Historic Galveston building facade
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A long-vacant, historic office building in Galveston is set to undergo a significant transformation. The former Medical Arts Building, a landmark since 1929, will be converted into a 120-room boutique hotel named The Quay. This development promises to revitalize a structure that has been empty since the 1980s, adding a new hospitality option to the island city.

Key Takeaways

  • The 11-story Medical Arts Building will become a 120-room boutique hotel.
  • The hotel, named The Quay, will be part of Hilton’s Tapestry Collection.
  • Construction is expected to begin soon, with a target opening in January 2028.

From Offices to Elegance

The Itex Group, which acquired the property in 2016, initially planned for an apartment conversion. However, the vision has shifted to creating a sophisticated hotel experience. The Quay will feature stylish suites and rooms, complemented by a first-floor restaurant and bar, aiming to attract visitors seeking a unique and local stay.

A New Chapter for a Historic Landmark

The Medical Arts Building, a prominent fixture in Galveston’s skyline, has stood empty for decades. This conversion marks a significant revitalization effort, breathing new life into a piece of the city’s architectural heritage. The project is being designed by MCS Architects, a Houston-based firm, with Driftwood Hospitality Management set to oversee the hotel’s operations.

Timeline and Future Outlook

While a general contractor is yet to be selected, Itex is targeting a January 2028 opening for The Quay. This ambitious timeline underscores the commitment to restoring and repurposing the historic building, contributing to Galveston’s growing tourism and hospitality sector.

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