BRISTOL, Va. — A local hotelier blames rising costs for delaying the construction of a new combination Home2 Suites/Tru by Hilton hotel at The Village at I-81 Exit 7.
Last week the Bristol Virginia City Council agreed to extend the deadline for Prakash Patel and S & D Hotel, LLC, to complete construction of the planned 160-room project as part of a financial agreement with the city and its Industrial Development Authority.
The modified agreement will push the expected opening date for the project from Sept. 30, 2025, to June 30, 2027.
“The cost of everything is going up, especially in construction,” Patel said after the meeting. “We’re wanting to see how the economy is going to pan out and the cost of construction — the materials. We’re still headed in the same direction but this is about costs.”
Under the plan, once the hotel begins operations, it would receive a quarterly rebate of up to 50% of the lodging tax revenues generated during its first four years — up to a total of $600,000.
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The City Council originally approved the agreement in December 2023 and a groundbreaking was held in February 2024. Some work has occurred on the site but construction hasn’t started.
That firm already operates the nearby Hilton Garden Hotel at The Village, the hilltop site that also includes Cracker Barrel, The Rehab Center and Memory Care at Bristol and Virginia Premier.
“To the owners, the developers, we all appreciate investments in the city of Bristol,” Councilman Anthony Farnum said, after making the motion to approve the change. “People can choose to develop anywhere but you have chosen to build in Bristol and it is very much appreciated.”
Mayor Becky Nave said she sees a “definite need” for the hotel and also expressed appreciation for the investment in the city.
The project is described as an L-shaped, six-story hotel including 90 longer-stay Home2 Suite rooms and 70 Tru by Hilton boutique-style rooms, the developer previously said.