Developers break ground on new South Side Bethlehem hotel

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South Side Bethlehem is getting a new hotel that will be within walking distance of ArtsQuest and Lehigh University. 

High Hotels Ltd., a subsidiary of High Real Estate Group, broke ground Tuesday on the construction of a new Tempo by Hilton hotel aimed at the city’s growing arts and tourism district. 

Located at 36 W. Third Street, directly across from ArtsQuest’s Creative Factory, the 140-room hotel will be tailored to modern business and leisure travelers, the company said.  

The hotel is expected to open in October 2027 and will create more than 50 new jobs in the region. 

“This groundbreaking reflects the continued momentum of South Side Bethlehem as a destination for culture, events, and economic growth,” said David Aungst, president of High Hotels Ltd. “We’re excited to bring Tempo by Hilton to this location, creating a hotel that complements the energy of ArtsQuest while meeting growing demand for high-quality accommodations in the district.” 

The project will be constructed by High Construction Company. Greenfield Architects served as the project architect, while High Associates managed the land development. All are subsidiaries of the High companies. 

Guestrooms features will include 65-inch streaming-enabled televisions, mini refrigerators, and Bluetooth-enabled bathroom mirrors with integrated speakers. Select rooms will offer in-room Peloton bikes and wellness accessories, while six suites will provide additional space for extended stays, featuring full kitchens and separate living areas. 

The hotel will include more than 1,500 square feet of flexible meeting space for corporate gatherings and community events. A rooftop bar overlooking the South Side and SteelStacks area will create a new destination for guests and local residents alike. An outdoor patio along the Bethlehem Greenway will provide direct connectivity to the surrounding neighborhood. 

The property will feature an expanded fitness center on the seventh floor with Peloton equipment. Guests will also have access to a 24-hour marketplace and can receive benefits from Hilton Honors. 

The lobby will feature the Moonsong Café, which will serve coffee and breakfast in the morning before transitioning into a relaxed bar setting with beverages and light fare, creating an all-day gathering space for guests and the community. 

With its location in Bethlehem’s South Side Arts District, the hotel will incorporate art installations in the lobby, as well as a gallery wall showcasing local artists and large-scale exterior panels designed by a regional artist.