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Drury Hotels begins construction at historic downtown Chattanooga site

Contributed image / A rendering from Drury Hotels shows an updated design for a Drury Plaza Hotel planned for the corner of Market and East Third streets in downtown Chattanooga. The eight-story project will include 200 rooms.
Contributed image / A rendering from Drury Hotels shows an updated design for a Drury Plaza Hotel planned for the corner of Market and East Third streets in downtown Chattanooga. The eight-story project will include 200 rooms. Contributed image / A rendering from Drury Hotels shows an updated design for a Drury Plaza Hotel planned for the corner of Market and East Third streets in downtown Chattanooga. The eight-story project will include 200 rooms.

Drury Hotels has begun construction with an updated design for an eight-story hotel on the corner of Market and East Third streets in downtown Chattanooga, facing opposition for replacing a historic building.

The redesign came after Drury requested and was granted a deferral in January from the city’s downtown zoning panel, whose members objected to what they said was a suburban hotel planned for an urban setting.

Because the redesign did not require major modifications to downtown code, the zoning panel did not have to approve it, city spokesperson Stephanie Cepak said last month.

The Drury Plaza Hotel at 301 Market St. will have around 200 rooms and will feature an indoor pool, a lobby restaurant and bar and event spaces, according to a Wednesday press release.

The Missouri-based company entered the Chattanooga market when it opened a 210-room hotel near Hamilton Place on Shallowford Road last year.

(READ MORE: Drury Hotel asked to respect downtown Chattanooga’s history)

“Drury Hotels is excited to grow our presence in the Chattanooga market,” Charles Drury III, a director of development at Drury Development Corp., said in the release. “Our next hotel will be in the center of the vibrant downtown area and within easy walking distance of the Tennessee Aquarium and Riverfront districts. We are looking forward to contributing to the growth and thriving atmosphere of downtown as permanent community members.”

The company said it would announce an official opening date as construction progresses.

Chattanooga’s historical preservation group opposes the development, which it said involves the destruction of the historic “Car Barn,” a brick building between Broad and Market streets dating back to 1886.

The building was used as a storage and repair facility for the city’s public transportation system for nearly a century and is on the National Register of Historic Places, the group said.

Photos included in a press release from Preserve Chattanooga on Wednesday appeared to show excavators tearing into the structures.

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“Chattanooga’s unique architectural assets must be preserved for residents, visitors and future generations,” Todd Morgan, executive director of Preserve Chattanooga, said in the release. “It’s what makes our city special and has significant economic benefits.”

Morgan said in a June interview that he had received no communication from Drury Development or Drury Hotels about his concerns.

The Sportsbarn fitness club operated in the historic building for decades before closing in 2023. Preserve Chattanooga will host a press conference on Thursday at 10 a.m. at the corner of Market and East Third Streets to oppose the project.

Drury Hotels, based in St. Louis, is a private family-owned company with more than 150 hotels in 30 states. It celebrated its 50th anniversary in 2023.

Contact Daniel Dassow at ddassow@timesfreepress.com or 423-757-6318.