Knoxville TN, September 12, 2025
News Summary
Significant advancements in major construction projects are evident in downtown Knoxville, including the completion of The Delaney and ongoing work on the AC by Marriott hotel and Lone Tree Pass residential area. The AC by Marriott will feature 162 rooms and a rooftop bar, while Lone Tree Pass is set to include 57 homes aimed at affordable housing. The City Summit Project is also underway, promising more residential units. Future hotel developments are anticipated, showcasing Knoxville’s growth in real estate and amenities.
KNOXVILLE — Significant progress has been made on major construction projects in downtown Knoxville over the past four months, highlighted by the completion of The Delaney and the ongoing developments of a new AC by Marriott hotel and Lone Tree Pass residential area.
The Delaney, a key project, is now largely complete, showcasing impressive architectural progress. In contrast, the Holiday Inn Express and the Sevier Avenue Project remain largely unchanged since May, primarily advancing only in internal works and preparations.
The AC by Marriott, announced in February 2024, is rapidly progressing with foundational work. The hotel, designed to be seven stories tall with 162 rooms and a rooftop bar, is located on what used to be a paved parking lot with one end facing Walnut Street and the other fronting Locust. Currently, the adjacent parking lot owned by Mike Chase is stacked with materials meant for the hotel, which have transitioned from supposed facade use to reinforced embankments.
Another development, Lone Tree Pass, is visibly advancing with the first building nearing enclosure and external materials being affixed. This residential project is set to include a total of 57 homes, 53 available for sale and 4 designated as workforce housing. The commercial component of Lone Tree Pass will offer over 22,000 square feet of space, which is currently available for pre-lease. The pre-sales for homes have commenced, with the west building expected to open in November 2025 and the east building in February 2026.
Specifics regarding the lone homes within the west building reveal 44 units, consisting of one for lease, thirteen already under contract, and thirty awaiting buyers, ranging from 500 to 900 square feet. The pricing varies from $369,500 for a 503-square-foot studio to $1.725 million for a 2,318-square-foot unit, averaging around $700 per square foot. Notably, Tree Top Coffee has already signed a lease for one of the commercial spaces within Lone Tree Pass.
Meanwhile, the City Summit Project, a smaller yet relevant development, is making strides towards its planned completion in spring 2026, with windows and balconies being integrated into the building’s structure. This five-story configuration will provide 89 homes, along with a mix of workforce housing units. While leasing for commercial spaces in the City Summit has not yet commenced, it is anticipated that the process will begin soon.
Community impacts are essential to note, as both the Lone Tree Pass and the City Summit are designed to cater to affordable housing needs in downtown Knoxville, specifically targeting essential workers whose incomes fall between 60% and 140% of the Area Median Income (AMI). In addition to these residential projects, a new eight-story Home 2 Suites by Hilton is under construction on Clinch Avenue, promising 130 rooms and an outdoor patio and rooftop lounge planned by The 9 Group and McMurry Construction.
Future developments also highlight an agenda for more hotel projects, including a Moxy by Marriott and a $22 million, 127-room SpringHill Suites by Marriott, indicating a robust expansion in the downtown area.
Summary of Major Downtown Knoxville Projects
| Project | Status | Details |
|---|---|---|
| The Delaney | Complete | N/A |
| Holiday Inn Express | Current | Primarily internal progression |
| AC by Marriott | Under construction | 162 rooms, rooftop bar, completion in 2025 |
| Lone Tree Pass | Under construction | 57 homes, 22,000 sq ft commercial, pre-sales ongoing |
| City Summit | Under construction | 89 homes, completion in 2026 |
| Home 2 Suites by Hilton | Under construction | 130 rooms, features patio and rooftop lounge |
| Future Hotel Projects | Planned | Moxy by Marriott, SpringHill Suites by Marriott |
Frequently Asked Questions
What major projects are currently under construction in downtown Knoxville?
Major projects include the AC by Marriott hotel, Lone Tree Pass residential area, and City Summit. The Delaney has been completed.
How many homes will Lone Tree Pass have?
Lone Tree Pass will include a total of 57 homes, with 53 for sale and 4 designated as workforce housing.
When is the AC by Marriott expected to open?
The AC by Marriott is expected to open approximately one year from now, in early 2025.
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Additional Resources
- Inside of Knoxville: September 2025 Development Update
- Knox News: Construction near World’s Fair Park
- Lodging Magazine: AC Hotel Knoxville Downtown Funding
- WBIR: 13-story Downtown Knoxville Building for Sale
- Rebusiness Online: AC Hotel Knoxville Downtown Financing
- Wikipedia: Knoxville
- Google Search: Knoxville development news
- Google Scholar: Knoxville urban development
- Encyclopedia Britannica: Knoxville
- Google News: Knoxville news
Author: STAFF HERE KNOXVILLE WRITER
The KNOXVILLE STAFF WRITER represents the experienced team at HEREKnoxville.com, your go-to source for actionable local news and information in Knoxville, Knox County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Dogwood Arts Festival, Big Ears Festival, and Knoxville Asian Festival. Our coverage extends to key organizations like the Knoxville Area Chamber Partnership and United Way of Greater Knoxville, plus leading businesses in healthcare, education, and energy that power the local economy such as Covenant Health, University of Tennessee, and Tennessee Valley Authority. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
