TYLER, Texas (KLTV) - A hotel group has finalized a deal with Frost Bank to bring a boutique hotel to downtown Tyler, according to city officials.
Valencia Hotel Group will build the new hotel at the corner of North Broadway Avenue and East Ferguson Street at the former site of the Regions Bank lobby. The 144-room hotel is expected to bring an investment of $47.7 million and create more than 60 new jobs.
The hotel will open by Jan. 1, 2028, according to the Tyler Economic Development Council. It will be called the Blackstone Hotel, paying homage to the old Blackstone Hotel, which was located just north of the future hotel site along Broadway Avenue. The old hotel was demolished in 1985.
In August, Tyler City Council approved an economic development agreement with Valencia Hotel Group. The city’s incentives, capped at $12 million and funded only from revenues generated by the hotel, will be tied to economic activity created by the project.
The Smith County Commissioners Court will consider a tax abatement agreement with the hotel owners at Tuesday’s commissioners court meeting. The Tyler Junior College Board of Trustees considered a similar request at their meeting Thursday.