A new hotel proposed on Texas State University property near downtown San Marcos could bring jobs, events and more foot traffic to the area.

What happened?

On July 1, San Marcos City Council approved the first of two readings needed to greenlight construction of “Project Cat Tree,” the proposed hotel.

Council members voted after hearing a presentation from Christian Smith, the city's economic and business development manager.

The project is being led by Midway Development LLC, with Austin-based New Waterloo—known for operating South Congress Hotel and Hotel Ella—slated to manage the property.


In a nutshell

The 130-room, full-service hotel would be built on Texas State University property at 429 N. Guadalupe St. Plans include a restaurant and bar, meeting space, and an event lawn with an amphitheater.

The projections

The project represents a minimum capital investment of $40 million and would "be treated as private property for the purposes of taxation,” said Smith.


The agreement includes a 95% sales tax rebate over 10 years, as well as rebates on construction-related sales taxes prior to the hotel’s completion—totaling $9.1 million.

Stay tuned

Council members are expected to consider a second and final reading before the project can move forward.