Officials yesterday said they will spend up to $20 million to build an upscale hotel adjacent to Indiana University of Pennsylvania using a developer from Canonsburg.

The university and its foundation announced their choice of The Horizon Team, a Canonsburg venture representing Horizon Properties Group LLC and Summit Development Consulting Corp.

The team will work on plans for the six-story hotel to be connected to the Kovalchick Convention and Athletic Complex. Groundbreaking for the center is expected this fall, and the hotel is slated for completion in March 2011, officials said.

The Foundation for Indiana University of Pennsylvania is overseeing the hotel work on three of the 33 acres off Wayne Avenue related to the convention and athletic complex. Under a public-private partnership, the hotel will be built on state-owned property.

A feasibility study has recommended that the hotel be full-service and upscale and that it have 140 rooms and both banquet and meeting facilities. Also recommended was selection of Hilton, Marriott or Hyatt as a preferred franchise, project planners said.

Other big-name hotel chains may be considered for the project, said Mark Geletka, assistant vice president for administration at IUP. "The foundation is interested in making sure that it's a well-known flag in the industry," he said.

The foundation will finance the planned hotel using various sources including local banks, Mr. Geletka said.

The development would be a significant addition to the existing inventory of 440 hotel rooms in the Indiana area, officials said.