News Summary
Drury Hotels has commenced construction on an eight-story hotel in downtown Chattanooga, despite opposition from local preservationists regarding the historic Car Barn’s demolition. The Drury Plaza Hotel will feature around 200 guest rooms and various amenities, aimed at boosting tourism in the area. While city officials affirm the new development meets building codes, Preserve Chattanooga stresses the importance of preserving the architectural heritage associated with the site, which is listed on the National Register of Historic Places.
Chattanooga – Drury Hotels has officially broken ground on an eight-story hotel project at the intersection of Market and East Third streets in downtown Chattanooga, despite ongoing concerns about preserving the historic “Car Barn” structure that once occupied the site. The Car Barn, a brick building constructed in 1886, served as storage and repair facilities for public transportation vehicles, including streetcars and city buses.
The decision to proceed with the hotel development follows a redesign that was approved after a deferral earlier this year from Chattanooga’s downtown zoning panel. Initially, the panel raised objections to the proposal, noting that the hotel had characteristics more typical of a suburban establishment rather than fitting within an urban environment. However, city spokesperson Stephanie Cepak confirmed that the redesign adhered to downtown building codes; therefore, it did not require further zoning approval.
The planned Drury Plaza Hotel will encompass approximately 200 guest rooms and include amenities such as an indoor pool, a lobby restaurant and bar, and various event spaces. The hotel’s location places it within walking distance of several popular attractions, including the Tennessee Aquarium and the city’s scenic Riverfront district. As construction progresses, an official opening date is anticipated to be announced.
In contrast, the local historic preservation group, Preserve Chattanooga, has voiced strong opposition to the hotel project due to the impending demolition of the Car Barn. The organization emphasizes the need to protect Chattanooga’s architectural heritage for future generations, stressing that the historic building is listed on the National Register of Historic Places. After serving as a transit hub for several decades, the Car Barn was transformed into the Sportsbarn athletic club in the early 1980s. However, that use ceased in 2023, thereby opening the door for redevelopment in the area.
To advocate for their cause, Preserve Chattanooga is organizing a press conference to address the project’s implications on Thursday at 10 a.m. at the site of the construction. The organization has been active for 50 years in protecting the city’s unique architectural heritage and has previously initiated dialogue with Drury Development regarding the hotel project.
Drury Hotels, founded in St. Louis, is celebrating its 50th anniversary in 2023 and operates more than 150 hotels across 30 states. The company has expressed enthusiasm for entering the Chattanooga market, noting the area’s potential for growth and tourism. The development marks a significant milestone for the hotel chain, which aims to offer quality accommodations in a vibrant urban environment.
As construction begins on the new hotel, the conflicting interests between economic development and historic preservation remain at the forefront of community discussions. Stakeholders are bracing for what this project may signify for Chattanooga’s future, especially concerning the balance of modernization and maintaining the city’s cultural and architectural history.
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New Drury Plaza Hotel to Replace Historic Sportsbarn in Chattanooga
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Additional Resources
- Times Free Press: Drury Hotels Begins Construction at Historic Site
- Chattanoogan: Work to Start on 8-Story Drury Hotel
- Lodging Magazine: Drury Plaza Hotel Chattanooga Opens
- Wikipedia: Historical Preservation
- Google Search: Chattanooga Drury Hotel

Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton 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 Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.


