The Itex Group expects to start construction on a historic Galveston building, transforming what was once the Medical Arts Building into something distinctly different and contemporary.

The plan is to convert the dilapidated 11-story building into a 120-room boutique hotel to be called The Quay, with suites and distinctly styled rooms as well as a first-floor restaurant and bar. The Houston Business Journal reports it will be part of Hilton’s Tapestry Collection, a brand for local, independent boutique hotels. Driftwood Hospitality Management will manage the hotel. Itex has tapped Houston-based MCS Architects to design the project. A general contractor has not yet been selected. Itex is targeting a January 2028 opening date.

Itex bought the property in 2016 with plans to convert it into apartments, but has since settled on the hotel. The Medical Arts Building was built in 1929 and has stayed vacant since the 1980’s.