The University Inn on the campus of the University of Nevada, Reno is being renovated for student housing.
The inn, owned by UNR, was used to house visiting professors, guests and judges attending the National Judicial College. It is now closed and is scheduled to reopen in 2008 as a student residence hall, officials said.
The project is expected to cost between $8 million and $13 million.
University officials said they will seek offers from hotel chains to build a new hotel on land owned by the university.
"The university's master plan cites the need to build a new residence hall in the next three to four years," said Buzz Nelson, in charge of UNR facilities.
"I think it's an exciting opportunity for the university to meet the growing needs for additional student housing and for the potential development of a new major conference hotel."