KNOXVILLE (WATE) – A new hotel is coming to East Tennessee. Developers announced Monday a new location of Hyatt Place will be in Downtown Knoxville.Related:Marble Alley lofts open in Downtown Knoxville

The hotel’s building was originally home to the Farragut Hotel, a 190-room full service hotel. The hotel was a popular location for visiting dignitaries and Knoxville socialites. It became an office building around 1980. The headquarters for First Tennessee Bank and law offices for Senator Howard H. Baker was located in the space.

“The Farragut was a grand hotel when it opened in the 1920’s,” said developer Rick Dover. “We are building off the hotel’s legacy by introducing Knoxville to the Hyatt Place brand, Hyatt’s award-winning select service brand. This hotel will offer smartly designed social spaces and spacious guestrooms, and guests can expect a beautiful facility and the latest in technology throughout.”

Dover Development decided to renovate the hotel after years of the building being empty.

The hotel has the support for the City of Knoxville and Knox County. The hotel received a 2-year payment in lieu of taxes. The City of Knoxville helped the project receive a $2.9-million loan.

“The economic development in downtown Knoxville has been phenomenal over the last 15 years,” said Congressman John H. Duncan, Jr.  “I am pleased that the Hyatt Place hotel will continue this trend by becoming part of our downtown community. I would also like to thank the Department of Housing and Urban Development for providing a 2.9 million dollar low cost loan to assist with this project.”

Hyatt Place at the Farragut will be home to 165 guestrooms, 24-hour food service, hot breakfast, free Wi-Fi, coffee to cocktails bar and a 24-hour gym. There will be guaranteed parking for guests in the State Street Garage.

The hotel will be in walking distance of the Tennessee Valley Authority headquarters and the Tennessee Theatre. It will open in early 2017.