The project at 808 E. North Loop 1604 is the first one in Texasfor Montex Real Estate of Monterrey, Mexico. Atlanta-basedInterContinental will manage the hotel.

William Wurzbach, president of the project's general contractingfirm FAS Construction Management of San Antonio, says Montex plansmore hotels in Texas, but says the developer hasn't been specificabout the location or the timeframe. He says Montex's first site isa high-growth area on the city's north side that is attracting agreat deal of development interest. "There's been lots ofresidential growth there for years and retail is following theresidential," he says. "There are good school districts in thatarea. You're also starting to get into the more scenic HillCountry, where people like to be."

Wurzbach tells GlobeSt.com that Montex made the decision todevelop a more upscale Staybridge on the site because that's thecompany's MO. "This particular developer is interested any timethere's an option from Staybridge to do moderate or highdevelopment and he chooses to do the higher end," he says.