The developer had received local approvals in January for ahotel that was then called the Castillo Grand, with 265 rooms and aprojected construction price of $143 million. As a St. Regis, thehotel's room count has been reduced but the expected developmentcost has risen to $160 million.

Although McDonald has not nailed down his financing, he stillplans to get into the ground this November, with completion slatedin late 2002. Starwood Hotels & Resorts of White Plains, NY,which franchises the St. Regis luxury brand, has agreed to flag itsinitial beach property in California. The local facility would beits first hotel asset in Florida.

Building high-priced hotels is not an easy task for developersthese days. That was borne out this week with the news that the$600-million rebuilt Diplomat Resort, Country Club and Spa innearby Hollywood will not open the first of its some 1,000 rooms inJanuary. Already a year behind original construction schedule, theproject has now been delayed again. Only 150 to 200 rooms are to beready by February.