Hotel Daphne, a boutique hotel that opened in early December in Houston’s Heights neighborhood, is already planning a significant expansion. The owners have proposed a $15 million project that would add a two-story, 10-room wing and new amenities to the property at 347 West 20th Street. According to information cited from the Houston Business Journal and filings with the Texas Department of Licensing and Regulation, the expansion will include 11,832 square feet of new construction.
The planned additions feature king suites, a single-story pool bar with an adjoining terrace, event space, an event kitchen, and a meeting room. Construction is expected to begin in spring 2026 and be completed by early 2027. However, state permit filings are preliminary and may be subject to change.
Hotel Daphne is operated as a joint venture between Austin-based Bunkhouse Hotels and Houston-based Wood Lane Partners. The five-story hotel opened on December 3 and was described as a “neighborhood guest house” designed to integrate into the Heights’ residential character rather than stand out. This approach aligns with trends among boutique hotels aiming for locations in more residential areas of Houston.
The hotel currently offers an interior courtyard, library/event space, retail shop, and an all-day restaurant named Hypsi. Its design features painted brick, stepped parapets, and steel windows reflecting the area’s industrial aesthetic. Bunkhouse Hotels managed the interior design internally. Room rates start at $359 per night.
For Wood Lane Partners, this expansion follows years of efforts to establish a presence in the Heights’ hotel market after previous plans for another boutique property stalled during the pandemic. Hotel Daphne began construction in 2023.
Bunkhouse Hotels also recently opened Hotel Saint Augustine in Montrose in 2024; this property received recognition with a Michelin Key for its design-forward approach within neighborhood settings.
