SLTX Capital is preparing to launch construction on the conversion of the historic Scanlan building at 405 Main St. in downtown Houston into a new hotel. Work is scheduled to begin on June 4, marking the start of a hospitality-focused repositioning for the century-old office property.
The project will transform the building into a 140-room hotel branded as Canopy by Hilton Houston Downtown. Plans also call for an accompanying restaurant and bar, positioning the property as an activated mixed-use hospitality destination within Houston’s downtown core.
According to reporting from the Houston Business Journal, SLTX Capital acquired the 96,699-square-foot building in December 2024. The previous owners had turned the property over to the lender in an effort to avoid foreclosure, and SLTX Capital subsequently stepped in as the new owner. The building is located within an opportunity zone, and it qualifies for both state and federal tax credits.
SLTX Capital expects to invest at least $12 million in the conversion. The capital program will cover the full reconfiguration of the former office layout into hotel rooms and amenity spaces, along with updates necessary to support the Hilton-branded flag and restaurant and bar operations.
The firm plans to complete the Scanlan building’s transformation next year. Once delivered, the project will bring a new branded hotel option to downtown Houston while returning a historically significant asset to active use.
Constructed in 1909 by the family of Thomas Howe Scanlan, a two-time mayor of Houston, the 11-story property is considered a distinctive example of early high-rise development in the city. It is believed to be the only office building in Houston designed by D.H. Burnham & Co. of Chicago, and it was built with a steel frame, which was uncommon at the time. The upcoming conversion will retain the building’s presence in the downtown skyline while updating its interior for contemporary hotel use.
