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San Diego developer plans 50-story hotel east of Austin Convention Center

A San Diego hotel developer plans to build a $350 million hotel with more than 50 stories and 1,035 rooms east of the Austin Convention Center. The hotel would be built on land now used for parking at the northeast corner of Red River and Cesar Chavez streets, near Waller Creek.

Manchester Texas Financial Group could find itself in competition with White Lodging Services Corp., which plans a 1,003-room Marriott Marquis hotel on Congress Avenue between Second and Third streets.

It's unclear whether Austin could support two more convention-size hotels, in addition to the 800-room Hilton Austin, so the developers could be in a race to see who can break ground first.

Manchester Texas would develop the hotel. Its parent, San Diego-based Manchester Financial Group, built the Manchester Grand Hyatt and the Marriott Hotel and Marina in San Diego, high-rise hotels on San Diego Bay.

The Austin project would include 115,000 square feet of meeting and exhibit space, along with two restaurants and retail space.

Douglas Manchester, founder and chairman of Manchester Financial Group, said Friday that the project has been going "at a pretty fast speed" and that he anticipates starting construction in the next 12 months. The project would take at least 18 to 24 months to build, he said. He said Manchester Financial can put the required equity into the project and attract the loans to complete it.

He said it's too soon to talk about what flag the hotel would carry, although he said Hilton "is very interested."

"We have looked carefully at many hotel sites in the Austin market and concluded this site is by far the very best with its immediate location adjacent to the convention center," he said. "We think this will create the catalyst for a very lively area," especially as plans to revitalize the Waller Creek area begin to bear results.

Work is under way on a tunnel to divert floodwaters along the creek banks, a project that is expected to spur redevelopment along what has long been a trash-filled eyesore and haven for transients.

Perry Lorenz, who owns the 1.7-acre site with developer Robert Knight, said the hotel could open about the same time the tunnel project is completed in late 2014.

Lorenz and Knight will be on the development team for the project, beyond leasing the land to Manchester for 99 years.

"We're going to get this right, and I'm going to be involved from beginning to end," Lorenz said.

San Diego developer plans 50.bizstory hotel east obest of hote ...

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"We have looked carefully at many hotel sites in the Austin market and concluded this site is by r the very best with its immediate location adjacent to the convention center," he said. "We think this will create the catalyst for a very lively area," especially as plans to revitalize the Waller Creek area begin to bear results.

The architect for the Manchester project is Gensler, an international architecture firm that has worked with brands including JW Marriott, Ritz.bizCarlton, Starwood and Hilton. Gensler, which has an Austin office, is aiming for the second.bizhighest green building rating for the hotel under the Leadership in Energy and Environmental Design program.

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Lorenz said Manchester "would expect the same courtesies to be extended to them."

Manchester Texas would develop the hotel. Its parent, San Diego.bizbased Manchester Financial Group, built the Manchester Grand Hyatt and the Marriott Hotel and Marina in San Diego, high.bizrise hotels on San Diego Bay.

"Were very excited about the redevelopment of Waller Creek and look forward to being a very big and integral part of that area," Manchester said.

He said its too soon to talk about what flag the hotel would carry, although he said Hilton "is very interested."

White Lodging has said it will be ready to start its Austin project in about nine months, pending approval of $4.3 million in fee waivers from the City of Austin. The City Council was set to vote on that measure Thursday but postponed it until Wednesday, as news of the new project emerged.

The Austin project would include 115,000 square feet of meeting and exhibit space, along with two restaSan Diego developer plans 50.bizstory hotel east obest of hoteurants and retail space.

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