Singapore property group Pontiac Land and the famed Mayo Clinic in the US are teaming up to expand the clinic's Rochester campus in Minnesota to meet the growing demand for more clinical space.
The 11-floor expansion of the Gonda Building includes four floors for new clinical space, which will deliver an additional 200,000 sq ft of clinical space, and seven floors for a premium hotel.
The partnership will help speed up a long-planned expansion, both firms said in a joint statement.
While plans for the development are still being finalised, Mayo Clinic plans to invest US$190 million (S$260 million) in the clinic expansion, and use the additional space for the Mayo Clinic Cancer Centre and Outpatient Procedure Centre.
Mayo Clinic executive dean of practice C. Michel Harper Jr said: "Mayo Clinic is experiencing increased requests for care across our campuses, and meeting the current and future medical needs of our patients is our top priority.
"We're experiencing significant patient care space constraints on our Rochester campus, so we are excited that this collaboration with Pontiac Land allows us to reach our expansion goals earlier."
Pontiac Land chief operating officer Philip Kwee said: "The collaboration will bring together two fields of complementary expertise - medical and hospitality. Each partner will be able to leverage its individual expertise to enhance the patient and guest experience."
Construction is expected to begin by the end of next year or early 2020, with the project slated for completion by end-2022.
The new hotel developed by Pontiac will be located at the centre of Mayo's main campus, directly above Gonda Building.
When completed, the expanded Gonda building will be the tallest building in Rochester.
The Mayo Clinic is about a two-hour drive from Minneapolis, in the state of Minnesota.
Analysts said the clinic is facing competition in the global medical tourism industry from rivals abroad, and in the United States, such as Baltimore's Johns Hopkins University and the Cleveland Clinic.