Lakeway approves over $2M in grants to Lakeway Marina and Trestle Studio

Lakeway City Council approved over $2 million in grant funds to go to Lakeway Marina and Trestle Studio, at a July 20 council meeting.

The overview

The original Lakeway Inn and Marina opened in 1963 as an anchor project for the new Lakeway resort community.

Trestle Studio purchased Lakeway Resort and Spa in May and is planning $29 million in improvements throughout the property.

These improvements will include refreshing more than 24,000 square feet of indoor and outdoor gathering spaces, redeveloping locally driven food options, expanding wellness and recreational programming, and modernizing guest rooms and other amenities, according to prior reporting from Community Impact.

Trestle Studio requested $2 million from Lakeway’s hotel occupancy tax fund for rehabilitation and renovation costs, developing signage to guide tourists and staging a “reintroduction” marketing campaign, according to city documents.

The first million will be dispersed in July 2026 with two allotments of $500,000 dispersed in July 2027 and January 2028.

The details

Lakeway Marina, located a 3-minute walk away from Lakeway Resort and Spa, also requested over $1.1 million from the HOT fund.

The request is meant to fund renovations on the building, parking lot and boat ramp, along with updated signage and marketing materials to match the branding of Lakeway Resort and Spa.

Council approved funds for signage and historical restoration, but will be reassessing the funding requests for the parking lot, boat ramp and advertising at the Aug. 17 council meeting.

Both Trestle Studio and Lakeway Marina requested the city waive its rule of requiring the applicant to match funds allocated for marketing purposes with its own grant, per city documents.

The big picture

Since 2022, Lakeway Resort and Spa has seen declining sales volume, primarily attributed to deferred maintenance issues, outdated rooms, outdated common area design and pricing decisions, according to city documents.

This decline in sales volume has resulted in a decline in hotel occupancy taxes collected, according to city documents.

In fiscal year 2022-23, Lakeway Resort and Spa generated $730,000 in HOT revenue, yet in fiscal year 2025-26 that amount declined to $485,000.

After the renovations, Trestle Studio is expecting the HOT fund to grow to $875,000 in 2031, Assistant City Manager Ashby Grundman said.

“We already started retelling the story,” Trestle Studio Investment Officer Bridgette Summers said. “As we do that, there’s a certain elevation of the guest experience that’s going to come with that.”

Lakeway Resort and Spa has the highest rate and largest number of rooms of any hotel in Lakeway, and currently generates 48% of HOT funds for the city.

Trestle Studio projects that the HOT fund investment will be 95% repaid in increased HOT fund collections in 2033, and the entire resort and spa and separate grant for Lakeway Marina will be paid off in 2035, Grundman said.

HOT funds are collected from hotel guests in Lakeway at a rate of 7%. Lakeway’s HOT fund currently sits at nearly $10.5 million.

Something to note

Renovations from Lakeway Resort and Spa are expected to be completed in May 2028.

"It's a beautiful opportunity," Council member Kelly Brynteson said. "By tying in the marina, you just captivate an entirely different audience ... I can't wait to go back."