Hotel Daphne is now open in the Heights.
Bunkhouse Hotels is expanding its footprint in Houston, one property at a time. After a splashy debut in Montrose with Hotel Saint Augustine, the Austin-based hospitality group is inviting guests to its newly opened Heights retreat, Hotel Daphne.
Fueled by the neighborhood’s rich and layered history, the 49-room hotel serves as an “extended living room” for both locals and travelers, with a library that doubles as a private event space for social events, a courtyard that makes guests feel like they’ve been transported to Europe, and chef Terrence Gallivan’s newest restaurant, Hypsi. “I hope that people feel an instant sense of comfort,” says Tenaya Hills, head of design at Bunkhouse Hotels. “I personally think that [Hotel] Daphne is such a great hotel because it feels so comfortable.”
First-time developer Ben Ackerley tapped Bunkhouse Hotels to work on the project about five years ago, while also enlisting architecture and design firm Blanchard A+D to shape the vision. Early conversations focused on gaining a better understanding of the neighborhood and Ackerley’s goals for the hotel. After multiple trips to Houston, Hills says the team realized Daphne’s potential to serve as both a neighborhood hangout and a destination stay.
Like Hotel Saint Augustine, Hotel Daphne strives to reflect the neighborhood and its history. Developed in the late 1800s, the original vision was a planned utopian community, but its past was nothing of the sort. The formerly dry neighborhood became a spot for secret drinking and a home for hippies in the 1960s. Today, it’s a destination for Houston’s nightlife and hottest new restaurants. “We love that idea of this amazing, like idealism, turned into debauchery,” Hills says, so she and her team decided to give the hotel a story.
“[We’re] leaning into the Arts and Crafts of the neighborhood and the rich history with architecture and design and interiors and then layering in the reality of decades over time,” she says.

Book your next staycation in the Heights at Hotel Daphne.
Imagine this: a grand house that’s been passed down for generations, evolving with each new owner. Walking in, guests are greeted by a semicircular couch from Round Top that exudes comfort. A concierge desk glimmers in handmade tile, and nearby, a retail selection with personalized merchandise tailored to the hotel. Rooms (starting at $359 per night) include custom beds with headboards that feature landscape textiles; antiques and vintage finds; warm neutrals; and AI-designed carpeting inspired by William Morris’s Strawberry Thief.
Five terrace rooms—each 425 square feet—feature king beds, lounge areas, bistro tables with seating, and balconies that overlook the hotel’s courtyard. The penthouse suite ups the ante, spanning 1,150 square feet, with two bathrooms and an additional parlor room equipped with a dining table and a wet bar.
The hotel’s name comes with its own backstory. The developers brought their tradition of naming every dog they’ve owned, Daphne, to the hotel. They later learned that the name references a mythical Greek nymph who turned herself into a laurel tree to avoid marriage.

Considered an extended living room, many of Hotel Daphne’s lodging options come with their own lounge areas and balconies.
Art helps carry the theme forward. Across the hotel rooms, one of five pieces by Los Angeles–based artist Alexandra Valenti greets guests with scenes depicting Daphne’s story. The Ackerley family also draws from their personal collection of 160 artworks, rotating pieces so no two visits feel the same.
And if Daphne feels like a stylish home, Hypsi is its lively dining room. “It’s meant to be a place of respite,” chef Gallivan says. Named after an ancient Greek settlement, the first-floor restaurant pays homage to the Heights’ past and its private drinking clubs with simple elegance. House cocktails riff on Italian classics, including the Daphne Americano (Italian vermouth blend, pink peppercorn Campari, strawberry, and soda) and a tequila Piña Soffice, a blend of Italicus, fluffy pineapple juice, and Aperol foam. And there’s just enough wine (around 35 selections) to keep you pleasantly occupied. “It carries a huge punch with sort of traditional, classic [options], and there’s some more fun, off-the-beaten-path things, too,” he says.

Chef Terrence Gallivan returns to the Houston dining scene as the chef of Hotel Daphne’s restaurant, Hypsi.
Gallivan aims to serve refined Italian classics, including dishes such as roasted prawns with a savory pepperoni butter and Calabrian chili; beef short rib brasato; a Duroc pork Milanese with buttermilk dressing; and the fan favorite, a Gulf Coast–inspired roasted snapper with salsa verde. But the in-house pasta program deserves all the praise, including tortellini with butternut squash and a duck bolognese cavatappi. Already popular is the lumache alla vodka, made with spicy tomato, ‘nduja, stracciatella, and basil. Pair that with the tableside mozzarella cart, filled with multiple types of cheeses and other seasonal options, and consider yourself stuffed. “Hopefully [diners] leave with a full belly and a smile on their faces,” Gallivan says.

Chef Terrence Gallivan shows his restaurant roots with an in-house pasta program that doesn’t disappoint.
For lighter fare, lunch at Hypsi promises a separate, smaller menu featuring sandwiches named after streets in the Heights. Heights Boulevard is loaded with capocollo, gorgonzola cream, truffle honey, and red mustard frills, while 20th Street is lined with prosciutto, stracciatella, parsley aioli, and arugula on housemade focaccia.
And this is only the beginning. By 2027, Hotel Daphne will add a swimming pool, a gym, and additional rooms, further solidifying its presence in the Heights.