The Texas State University Board of Regents entered into a development agreement with Midway to construct a $70 million hotel on the Texas State campus in San Marcos. It provides the ground lease, along with two possible 10-year extensions, at the 3-acre site at 429 N. Guadalupe St.

Original plans for the 120,000-square-foot full-service hotel project include at least 130 rooms, an event lawn and amphitheater, restaurant, bar, pool and courtyard and meeting and event space. There are no other full-service hotels near downtown San Marcos.

San Marcos is about 30 miles south of Austin and has a population nearing 75,000 people, while Texas State has an enrollment of about 40,000 students.

A $9.1 million incentive agreement from the city of San Marcos will be provided in 10 payments. Developers are required to invest a minimum of $40 million. Construction is required to start by the end of 2026 and be completed within 30 months.