SLTX to convert Scanlan Building into Canopy

Scanlan Building Canopy by Hilton

SLTX CAPITAL, A Sugar Land, Texas-based developer, will convert downtown Houston's century-old Scanlan Building into a 140-room Hilton Canopy hotel. Plano, Texas-based Frontera Hotel Group will manage the property, set to open in summer 2027.

SLTX Co-founders Ali Momin and Navid Karedia lead the firm, while Frontera is led by Chairman and CEO Peter Bheda and SVP and Chief Development Officer Zuhair Bheda.

“Frontera Hotel Group is honored to be entrusted with the management of this transformative project,” Zuhair Bheda said in a statement. “This hotel will serve as a bridge between Houston’s storied past and its dynamic future, offering an upscale hospitality experience tailored to both travelers and locals. The Canopy by Hilton brand is the perfect fit, embracing the building’s heritage while infusing it with contemporary elegance.”

This will be Houston’s first hotel under Hilton’s Canopy brand.

SLTX acquired the Scanlan Building late last year through a deed-in-lieu-of-foreclosure transaction, Houston Chronicle reported. While the price was undisclosed, county records last appraised it at $7.5 million, or $86 per square foot. The developer is seeking state and federal historic tax credits to fund the project.

Built in 1909 on the site of the Republic of Texas’ first “White House,” the Scanlan Building is known for its crown molding, marble walls and the Case Maclaim mural of a boy on a bicycle, according to the Chronicle. Adaptive reuse is growing in Houston, especially office-to-residential and hotel conversions, as developers respond to market shifts and high office vacancies.

SLTX Capital’s redevelopment aligns with Houston’s evolving urban core, including the upcoming Main Street Promenade. The façade, mural, crown molding and marble interiors will be preserved. The Canopy by Hilton will feature a rooftop garden, fitness center and communal spaces, serving corporate, convention, and leisure travelers.

A recent survey by the American Hotel & Lodging Association and Hireology found that 65 percent of hotels still face staffing shortages despite higher pay and benefits over the past year.