New hotel coming to Knoxville’s Old City, adding to revitalization excitement
The proposed building would replace the Merchants of Beer, which closed down on October 26.
A Georgia-based company with ties to multiple hotel projects in downtown Knoxville has purchased the former Merchants of Beer (MOB) property. The building, located at 136 Central Street, was sold for $5.15 million, according to a Special Warranty Deed filed on Monday. The buyer, Vector Hospitality, is no stranger to Knoxville’s booming hotel scene.
The property has a varied history, having once been home to a car rental service and a diner before becoming Merchants of Beer. Currently, the majority of the space is used as a parking lot, which developers believe could be better utilized.
They currently have three projects underway in Knoxville, all listed as “coming soon” on their website.
One of the proposed developments is called “Tempo by Hilton,” and it is situated behind the YWCA Knoxville building. The other, an “AC Hotel by Marriott,” will be located at Walnut and Locust Streets. The third project is the latest to be announced… it will be a “Moxy by Marriott,” complete with eight stories and 170 rooms.
The AC Hotel is expected to begin construction soon, with a projected opening in fall 2026. The Tempo Hotel is aiming for a summer 2027 opening. The Moxy Hotel’s groundbreaking is scheduled for early 2026, with plans to open around summer 2027.
In a statement earlier this year, the company praised Knoxville’s growth, highlighting its “increased economic vitality” and describing the city as a growing hub for both business and tourism. The selected spot of this fourth hotel is just two block from where the new stadium is located.
Vector’s President, Aman Patel, expressed his enthusiasm for these projects in a statemen tin February, “We are excited to be a part of Downtown Knoxville’s growing community and contribute to its vibrant hospitality landscape. These hotels will elevate the city’s hospitality scene by allowing guests and locals to connect with other travelers, and immerse themselves in the community they’ve come to explore, positioning Knoxville as a premier destination for travelers and locals alike.”
He also promoted the company’s dedication to sustainable practices, providing employment opportunities, and fostering economic growth in East Tennessee.
The company has not yet provided a release with architectural renderings for their latest land purchase.
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