Vector Hospitality Lands $47M for Knoxville Project
The 175-key development is slated for delivery in 2028.
Vector Hospitality has secured a $47 million senior construction loan for Moxy by Marriot, a 175-key hotel project in downtown Knoxville, Tenn. Proceeds represent roughly 77 percent of the total development cost. Arriba Capital negotiated the deal as exclusive financial advisor.
Moxy by Marriot is expected to come online in 2028. Project partners also include Pathway Development and ELEVATE Architecture Studio.
The seven-story building will rise at the entrance of the Old City, Knoxville’s historic entertainment district. Vector Hospitality bought the site from the Merchants of Beer for $5.2 million in 2024, in a deal arranged by SVN Wood Properties, according to Inside of Knoxville. The property is at 137 S. Central St., in an area with multiple music venues, art galleries, restaurants and craft breweries, and within walking distance of Covenant Health Park and Market Square.
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The location is close to Interstate 40, crossing the entire state and connecting the city directly to Nashville, Tenn., and Memphis, Tenn. McGhee Tyson Airport is 14 miles away.
Moxy by Marriot is set to have three food and beverage options, including The Getaway, a 4,300-square-foot rooftop bar and lounge drawing inspiration from Kid Curry’s 1901 jailbreak. The property will also feature a fully equipped fitness center on the seventh floor.
Founded in 2021, Vector Hospitality is an Atlanta-based hospitality developer with a growing pipeline of full-service hotels affiliated with the Marriot and Hilton brands. The firm has another hotel underway in Knoxville’s downtown, the 161-key AC Hotel by Marriott, taking shape at 427 Walnut St. Construction is expected to wrap up by the end of the year.
Nashville-Knoxville hotel offerings add to national gains
The national revenue per available room jumped 7.1 percent at the end of the third quarter of 2026, marking the strongest quarterly gain since early 2023, according to a Cushman & Wakefield hospitality report. Occupancy reached 67.7 percent during the quarter, while demand increased 3.1 percent, supported by strong midweek business traveling. Average daily rates also saw a 4.3 percent growth.
Performance varied across segments and markets, the report shows. In Tennessee, Nashville’s hotel demand recorded a 5.4 percent increase year-over-year and an occupancy rate of 69.1 percent, above the national average. Daily rates jumped 2.6 percent to $173, while revenue per available room climbed 5.9 percent to $120.
The largest hotel project to take shape in Music City’s downtown received the local authorities’ approval in October. Signia by Hilton will have 817 keys and rise 34 stories at 0 Commerce St. within Nashville Yards, one of the largest developments reshaping the city. Southwest Value Partners is the developer and HKS Architects serves as designer.
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