Interested in building a small hotel in SW Austin, how much capital do I need and what do I need to know?

I am interested in opening a small hotel in Southwest Austin. With the amount of growth in Circle-C and surrounding areas it always startled me that the only hotels in business are the La Quinta and Extended Stay America near MOPAC and 290, the new Holiday Inn Express in Sunset Valley and the old Texas Motel.

With the hundreds of residence in Circle-C, plus Freescale and now AMD moving in, it seems like accomidations are a massive shortage.

I would like to capitalize on this, does anyone know what it takes in terms of required capital, seeking approval from the county,etc.

I am thinking 290 West in Hayse county or closer in to the "Y" in Oak Hill.

Hotels are rather expensive, IE millions of dollars to start up.

Plus, franchise fees are pricy ($15-30k a month for a Holiday inn name) Once you get it going thoguh, trhey can be very profitable.

For a 100room hotel I would say 4 mil, maybe more if you are goinf to be high end.

have you begun looking at defunct old,
small hotels that you can buy and modify?
--or commercial buildings that are old ?

if you can't do it with great creativity
you will need several mil as the other
answerer said.