Austin Hotel Shuts Down for Rebrand, Terminates Majority of Employees

South Congress Hotel is set to close its doors for approximately a year starting May 31, as it embarks on a significant renovation and rebranding initiative. This decision, announced by Hyatt, the hotel's owner, will lead to the layoff of nearly all staff members.

In a communication to employees, Hyatt announced that the closure will affect the entire property, except the Mañana coffee shop, which is expected to remain operational. The majority of employees are set to be let go on or about May 31, with a few exceptions made for essential positions and Mañana personnel.

The company's letter stated, "When the hotel reopens, terminated staff members will have the opportunity to apply for any open positions."

The hotel, having opened over ten years ago, is set to reopen in the first quarter of next year after undergoing significant renovations. Upcoming renovations will feature reimagined guest rooms; enhanced public areas, including the lobby and rooftop; and a revitalization of all food and beverage offerings.

An unnamed source told KVUE News that the hotel informed employees of the closure earlier this week through a series of meetings. An employee also reported that the hotel notified certain departments, such as chefs and human resources, on Monday afternoon, while line cooks received their notifications the following morning.

The property features various notable establishments in Austin, including the restaurants Maie Day, Café No Sé, and Otoko, as well as bars and a rooftop pool. However, all of these will be closed during the renovation period.

General Manager Daryl Gomersall has confirmed that Mañana will continue to operate, albeit potentially at a reduced capacity. An employee observed that the coffee shop might consider reducing its menu offerings and focusing more on items sourced from nearby bakeries, given its limited staffing.

Hyatt boasts a portfolio of 20 hotels in Austin, prominently featuring several along South Congress Avenue, highlighting the brand’s substantial presence in the city’s hospitality landscape.