The developer didn't disclose the development cost or the hard construction cost in a prepared statement. However, area construction sources familiar with comparable projects elsewhere tell GlobeSt.com the Plano project couldn't be built for less than $200,000 per room or a total estimated cost of $35.2 million. The hotel is expected to open in late 2007.

"The success of a new hotel brand hinges on finding a financial partner that shares your vision and understands your model," says NYLO Hotels CEO John Russell. Merrill Lynch Capital is also providing funds for the second-quarter 2007 ground-breaking of a similar loft-style NYLO hotel in Warwick, TX.

Russell says his company plans to partner with New York City-based Lehman Brothers in opening 50 hotels in fast-growing suburban and secondary markets throughout North America by 2010. NYLO's franchising campaign is scheduled to begin in late 2007.