The historic Scanlan building, a century-old fixture in downtown Houston, is set to undergo a significant transformation. SLTX Capital, based in Sugar Land, has announced plans to convert this architecturally distinctive office tower into a boutique hotel operating under the Hilton Canopy brand. Situated at 405 Main Street, this building holds a storied past, once being the site of the first “White House of the Republic of Texas,” home to early Texas leaders in the 1830s before the government relocated to Austin. The property has been a landmark since its development in 1909 by the daughters of Thomas Howe Scanlan, a prominent Houston mayor.
SLTX acquired the 87,000-square-foot Scanlan building in a transaction concluded last December, following the previous owner’s asset forfeiture due to foreclosure. Although the purchase price remains undisclosed, Harris County records appraise the property at approximately $7.5 million. The building currently sees an occupancy rate of about 30 percent, with existing leases concluding by the end of 2025.
Ali Momin, co-founder of SLTX Capital, is keen on the building’s potential, especially given its location on a planned pedestrian promenade. He envisions the hotel becoming a vibrant spot for passersby, drawing in guests to its bar and restaurant along Main Street. Momin emphasizes the necessity for more unique hotel options in downtown Houston, aiming to cater to a variety of guests, including corporate, convention, and leisure travelers.
This development is particularly noteworthy as it introduces the first Canopy by Hilton hotel in Houston. Canopy by Hilton is known for offering locally inspired accommodations, and the Scanlan building’s rich history and architectural features make it an ideal candidate for such a transformation. SLTX Capital’s plans include maintaining the building’s historic charm, preserving elements like the façade, the prominent mural of a boy on a bicycle, crown molding, and marble interiors.
Renovations will modernize the building’s infrastructure, updating the plumbing, electrical, and mechanical systems, including elevators, to meet contemporary standards. In addition to the 140 hotel rooms, the project’s design, in collaboration with MCS Architects, proposes a rooftop garden, state-of-the-art fitness center, and meeting spaces, ensuring comprehensive amenities for future guests.
SLTX Capital aims to leverage state and federal historic tax credits to assist with the renovation costs, ensuring financial viability while honoring the building’s historical significance. This project is not SLTX’s first foray into historical conversions. Its sister company, Trend Hospitality, successfully converted the historic Stowers Furniture Building into an Aloft hotel in 2016, demonstrating their expertise in handling such transformations.
The conversion of the Scanlan building adds to a growing trend in downtown Houston, where nearly a dozen former office buildings have been repurposed into hotels. This shift reflects an adaptive reuse strategy that embraces the blend of preservation and modernization, catering to the increasing demand for hospitality spaces in the city’s urban core. As the Scanlan building prepares to enter a new chapter, it stands as a testament to Houston’s evolving skyline and its commitment to honoring history while facilitating progress.
