The former Merchants of Beer site at the entrance to Knoxville's Old City is reportedly on track for a 175-key Moxy by Marriott hotel. A loan is reported to cover 77% of the total project cost, and the hotel is reportedly scheduled to open in 2028.
A New Chapter For a Shuttered Old City Bar
A WBIR report described plans for a hotel on the site of the shuttered Merchants of Beer bar. The site is an entry point to the Old City.
Merchants of Beer closed in October 2024, according to the station's report. The building that housed the bar had previously held a car rental business and a diner, the same report notes, and the diner structure itself was later demolished — a detail Knox News explored in a look at whether the old diner building carried any historic significance.
Room Count and Timeline Have Shifted in Past Reporting
Room counts for the project have varied across coverage. Knox News reported in December 2024 that the hotel would add around 170 rooms, while a July 2025 report from Inside of Knoxville put the figure at 175 keys with three beverage outlets, including a rooftop indoor-outdoor lounge. Building height has likewise been described differently — Knox News previously reported an eight-story design, while the building has also been described as eight stories on one side and seven on the other. Opening timelines have shifted too: earlier Knox News coverage projected the Moxy and two sister hotel projects adding more than 500 rooms to downtown Knoxville by 2027, while the latest reporting points to a 2028 opening for the Moxy itself.
The site itself changed hands in late 2024. Atlanta-based hotel development and management group Vector Hospitality paid $5.15 million for the property at 136 Central Street, per a special warranty deed cited by Knox News, with that sale reportedly closing Dec. 9.
Planned Beverage Outlets and Rooftop Lounge
The project is planned to have three beverage outlets, including a rooftop indoor-outdoor lounge, according to Inside of Knoxville.
The site is near Market Square and the stadium.
Part of a Broader Downtown Hotel Build-Out
The Moxy loan follows a similar move by Arriba Capital in Gatlinburg, where the firm closed a $40 million construction loan for The Scoundrel, a 128-key Marriott Tribute Portfolio hotel, according to Hotel Management. Other hotel development is also moving forward near Knoxville's Old City stadium, including a planned six-story, 175-room SpringHill and TownePlace Suites hotel at 210 E. Jackson Ave., Knox News has reported. A construction timeline has not been announced for that project or for other planned mixed-use apartment developments in the area, according to the same report.
