Allen plans second Home2 Suites hotel, $7 million project this summer

Allen is getting a second Home2 Suites by Hilton, a $7 million hotel planned for Johnson Road that would add more than 100 rooms to the city’s lodging stock. The project is aimed at extended-stay guests and business travelers, with families and leisure visitors also in the mix.

The hotel is planned for 1233 Johnson Rd. in Allen, and the Texas Department of Licensing and Regulation filing describes it as privately funded new construction: a four-story wood building. The filing lists an estimated cost of $7 million, a start date of Sept. 21, 2026, and a completion date of March 20, 2028.

Allen already has a Home2 Suites presence near the Allen Convention Center and I-75, and the new project would expand a brand that has spread quickly across North Texas. The city’s pitch to visitors leans on geography: Allen promotes itself as a centrally located base near Dallas, Frisco, McKinney and Plano, which makes it attractive to travelers moving across the northern suburbs and the broader Dallas-Fort Worth metroplex.

The business case for another hotel is tied to more than highway access. Allen Economic Development Corporation says its job is to recruit and retain quality business and industry that expand the tax base and bring jobs to the city, and lodging is part of that equation. Hotels also generate direct local revenue: Allen collects a 7% city hotel occupancy tax, on top of Texas’ 6% state hotel occupancy tax.

The new Home2 Suites would also sit within reach of one of Allen’s biggest activity centers, the Credit Union of Texas Event Center. The 7,000-plus-seat venue hosts concerts, sports, trade shows, graduations and other events, helping fill rooms from weekend crowds, team travel and visitors who want to stay close to the arena district.

Allen’s growth gives the project added context. The city had 104,627 residents in the 2020 census, and the Census Bureau estimated its population at 113,447 on July 1, 2025. In a suburb growing that quickly, a new extended-stay hotel is a bet that demand will keep rising alongside retail, corporate travel and regional event traffic.