The Hilton Houston NASA Clear Lake hotel is preparing to shut its doors at the end of July as it transitions to a new hospitality flag. The property has notified employees that it will close on July 31 and that 65 workers will be laid off in connection with the shutdown.
The waterfront hotel is slated for a comprehensive renovation and rebranding as a Compass by Margaritaville property. Plans call for the hotel to reopen as Compass by Margaritaville Nassau Bay following a construction program that is expected to take approximately 12 months. Work is scheduled to begin soon after the hotel closes this summer.
The project follows a change of ownership that occurred less than a year ago. In August 2025, Nassar Bay Resorts acquired the 242-key Hilton Houston NASA Clear Lake for $27 million. According to reporting from the Houston Business Journal, Nassar Bay Resorts is overseeing both the rebranding to Compass by Margaritaville and the reconditioning of the existing asset.
When the renovation is complete, the hotel is expected to operate as an upscale offering under the Compass by Margaritaville flag. Planned features include on-site restaurants, a lazy river, and additional water-oriented amenities. Brand materials for Compass by Margaritaville describe an environment inspired by the Caribbean, emphasizing surf-and-sand color palettes and a warm, coastal aesthetic aimed at leisure travelers.
The property occupies a prominent location on the banks of Clear Lake, adjacent to NASA’s Johnson Space Center, home to NASA Mission Control. Its proximity to both waterfront recreation and a major aerospace employment hub positions the hotel to serve a mix of visitors tied to tourism, space-related business travel, and regional demand once it reopens under the new brand.
The temporary closure, subsequent renovation, and shift from a legacy Hilton flag to the Compass by Margaritaville concept collectively mark a significant repositioning for the hotel. As the rebranding advances, stakeholders will be watching how the upgraded amenities and refreshed identity translate into future performance once the property returns to service after the year-long construction period.
