KNOXVILLE, Tenn. (WATE) — A $22 million, 127-room hotel is set to be constructed in the Old City neighborhood of Downtown Knoxville.
The hotel will be built on E. Jackson Ave between between Barley’s Taproom and Pizzeria and the site of the new multi-use stadium.
“This is the first hotel to open in this part of downtown, which is exciting,” Knoxville Mayor Indya Kincannon said. “But more importantly, we’re seeing major new investment in and around the Old City – apartments, restaurants, entertainment venues and shops. This trend started several years ago, but now, with the stadium coming, it’s really taking off.”
A 10-year payment in lieu of tax agreement in support of the new hotel was approved by the Knoxville City Council Tuesday night. Property taxes on the hotel location will be frozen at $4,521 for a decade. A release from the city says the hotel will generate $285,618 in property taxes after the 10-year PILOT in addition to hotel-motel tax revenues.
According to the President of Old City Ventures Nick Patel, the new hotel will create 100 construction jobs during the initial build and 30 permanent jobs after it opens for business.
Patel sees potential in the Old City and hopes for it to become a destination district.
“I like the growth that’s going to happen in the Old City,” said Patel. “The Old City has its’ own identity, its’ own vibrancy and its’ exciting to be a part of that and to help grow the momentum.”
Expected to open in 2023, the SpringHill Suites by Marriott will be an all-suite hotel with a business and fitness center, swimming pool and meeting/event spaces. The hotel will be the first to open in this particular part of Downtown Knoxville.