SAN ANTONIO-In its first hotel equity investment, Principal RealEstate Investors LLC has joined forces with Miller GlobalProperties LLC and Marriott International Inc. to develop the1,002-room JW Marriott San Antonio Hill Country Resort and Spa.Construction began last week on the 800-acre project, withcompletion set for the first quarter of 2010.

Prices for similar developments have ranged between $70 millionand $100 million. In addition to the guest rooms, amenities and a36-hole golf course designed by Pete Dye and Greg Norman, theMarriott on Evans Road will have 61,000 sf total of ballroom space;40,000 sf for the exhibit hall and 10,000 sf of pre-function space.Austin Commercial is the project's general contractor, and HKS Inc.is the architect. Both companies are headquartered in Dallas.

Principal and Miller Global are providing approximately 40% ofthe equity for the project, which is part of the 2,600-acremaster-planned Cibolo Canyons. A consortium of banks will supplythe remaining construction funds.