Interstate, based in Washington, DC, operates about 400 hospitality properties with nearly 86,000 rooms in 45 states and Canada and Russia. Lend Lease has about $49 billion of commercial real estate assets under management.

The new arrangement will bring a more aggressive marketing of the Lakeway facility, which was recently renovated. Doris Parker-Grossman, principal of Lend Lease Real Estate Investments, said it offers cross-marketing opportunities with the three other properties Interstate manages in Austin and those in Dallas and Houston. She said Interstate also will market the property on the Internet, "an area where we previously have not taken full advantage."

Lakeway Inn is on Lake Travis, 18 miles west of Austin. After its $24-million renovation and expansion, the resort has 239 guest rooms, the Travis Restaurant and Lounge, 20,000 sf of state-of-the-art meeting space, two golf courses, 26 tennis courts, two and spa services. It also has a marina.