Hotel Conversion On Deck for Houston Lumber Warehouses

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A longtime Houston attorney is betting on the East Side’s rise with a $4.5 million adaptive reuse project that will turn old lumber facilities into an event venue and boutique hotel.

Arlette Molina, who practiced law before shifting into real estate, is redeveloping two connected Olshan Lumber buildings, the Houston Business Journal reported. She’s converting the 37,000-square-foot warehouse, at 2501 Commerce Street, into an exhibition hall and event space, while the former lumber offices, at 25 Live Oak Alley, will become a 96-key boutique hotel with a rooftop bar.

The exhibition hall is slated to open in November with a splashy debut: the Balloon Museum, a global traveling art installation featuring large-scale inflatable sculptures. The $450,000 warehouse conversion is being designed by Conejo Architecture, and Molina told the outlet she’s working “seven days a week” to meet the deadline, with weddings, quinceañeras and private events expected to follow.

The hotel, scheduled to open in time for the 2026 World Cup, will add two floors to the historic 1938 concrete structure, bringing the building to four stories and 78,700 square feet. Designed by MCS Architects, the $4 million project won’t carry a major hotel flag at launch. 

Molina, who founded Bonita Grand Holdings, bought the properties in 2019 and began planning last year. She previously advised real estate clients in Florida before diving into development herself.

Molina’s project joins other boutique hotel developments in Houston’s hospitality pipeline, like Hotel Daphne. The 51-key hotel, at 347 West 20th Street, is expected to open in early 2026. The developer is Austin-based Bunkhouse Hotels, the firm behind Hotel Saint Augustine in Montrose. 

The timing also coincides with broader development momentum around Houston’s East End, including the overhaul of the George R. Brown Convention Center, which aims to connect the area to downtown. The $1 billion expansion will add 700,000 square feet of new space and an outdoor plaza, 

Eric Weilbacher

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