TYLER, Texas (EAST TEXAS NEWS) – City officials say a hotel group has struck a deal with Frost Bank to build a boutique hotel in downtown Tyler.
Valencia Hotel Group will construct the new hotel at the corner of North Broadway Avenue and East Ferguson Street, on the former Regions Bank lobby site. The 144-room property is expected to represent a $47.7 million investment and create more than 60 new jobs.
According to the Tyler Economic Development Council, the hotel is slated to open its doors on January 1, 2028. It will be named the Blackstone Hotel, in tribute to the former Blackstone Hotel which stood just north of the future hotel site, on Broadway Avenue. The old hotel was demolished in 1985.
In August, the Tyler City Council approved an economic development agreement with Valencia Hotel Group. The municipal incentives, capped at $12 million and funded solely from the revenues generated by the hotel, will be tied to the economic activity produced by the project.
The Smith County Commissioners Court will consider a tax abatement agreement with the hotel owners at Tuesday’s meeting. The Tyler Junior College Board of Trustees considered a similar request at its Thursday meeting.
