New hotel in Arlington transforms historic Caravan motel into upscale concept
For decades, the Caravan Motor Hotel was a quirky landmark along Arlington’s Division Street, giving 1960s Las Vegas vibes with its mid-century architecture and palm-tree sign.
But in recent years, the two-story motor court lost its luster and became more of a symbol of the decline of a once-bustling corridor.
That’s about to change.
An Arlington entrepreneur has invested tens of millions of dollars to redevelop the Caravan property as an upscale boutique hotel with 145 rooms, a restaurant with a world-champion chef and a rooftop bar with six-floor views of the city’s sports stadiums.
The city is hoping the new Caravan Court Hotel, at the corner of Division and North Collins streets, will be a catalyst for revitalizing the corridor just south of entertainment district. The hotel has a soft opening scheduled for May 15 and a full launch on June 1, just in time for the World Cup.
Property owner Sam Mahrouq said he has tried to preserve as much of the original 1961 motel’s “DNA” as possible. Division Street is part of the historic Bankhead Highway, which was the nation’s first transcontinental route when completed in the 1920s.
Division Street became known for its car dealerships, which is how Mahrouq — a UTA alum — got started in business. He ran a small but lucrative used car lot next to the Caravan and tried for years to buy the motel to raze and make room for more vehicles. By the time he succeeded in acquiring the property, he started to have a change of heart. The Caravan was iconic.
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Over the years, Mahrouq’s ventures grew from auto sales to finance, insurance, technology, real estate and now hospitality. He also owns iKON Technologies, one of Arlington’s largest homegrown tech firms.
For the Caravan project, he hired Houston-based Valencia Hotel Group to manage the property. Valencia’s small collection of unique properties includes the Texican Court in Irving, Hotel Valencia Riverwalk in San Antonio, The George and Cavalry Court in College Station, and Cotton Court in Lubbock.
“I wanted to celebrate Arlington,” Mahrouq said Tuesday during the 2026 Real Estate Symposium at UT Arlington’s College of Business. “I came to Arlington when I was 18 years old, and I’m 58 now.
“Division Street has been good to me. And I really wanted to give back to the city,” Mahrouq said, calling the Caravan project his “legacy.”
Subtle details in the hotel design are tributes to Arlington history. For example, since Division Street was once automobile alley, the hotel’s headboards are burlwood, like vintage dashboards. Hotel furniture is reminiscent of car seats, and some light fixtures are shaped like headlamps.
Mahrouq said the motel’s roadside sign with its three palm trees is still being refurbished, using what’s salvageable from the original.
The restaurant at Caravan Court Hotel
Preston Nguyen, a 22-year-old world-champion chef from Arlington, is running the show at the Caravan Court Hotel’s restaurant, which will be called The Vandy — an homage to former Mayor Tom Vandergriff.
Nguyen said he is getting close to finalizing his seasonal menu that he described as upscale American. The lobby floor’s courtyard space will have a martini lounge, he said.
Nguyen was named World Chef Champion at the 2025 World Food Championships, the same honor he earned in 2021 when he was just 18 years old. He also competed on Gordon Ramsay’s “Next Level Chef” in 2023.
The Caravan’s rooftop bar will be called Elora Sky Club with a Mediterranean menu. Mahrouq, who grew up in Jordan, said the “oasis” motif will reflect his heritage.
In 2024, the city of Arlington approved incentives for the project including a $3 million grant for site preparation, performance-based tax rebates and annual grants of up to $1 million to support the development for 10 years. Mahrouq called the incentives essential to making the numbers work on the nearly $60 million project.
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This story was originally published March 4, 2026 at 7:44 AM.
