KEDB Press Release November 4th, 2025

KEDB approves Downtown Boutique Hotel project

The Kingsport Economic Development Board unanimously approved on Tuesday a $10 million project to redevelop the historic Kingsport Hosiery Mills property in downtown Kingsport. 

According to the agreement, Pennsylvania Developer Tim Butters and Hilton Head Hospitality Management plan to redevelop the entire three-acre site into a 60-room boutique hotel, complete with event space and a full-service restaurant. 

Under the terms of the agreement, two of the buildings located on the east side of the property will be demolished to make way for hotel guest parking and general public parking. 

Work is scheduled to begin in December with the hotel expected to open in the spring of 2027. The $10 million investment will create 40 temporary construction jobs and 50 permanent jobs and generate an estimated $65,000 in annual sales tax revenue and $160,000 in annual occupancy tax revenue.

“Thanks to a public/private partnership between the KEDB and the developer, we now have the chance to restore one of the most historic buildings in downtown Kingsport,” said Kingsport Mayor Paul W. Montgomery. “Not only will this project increase our hotel inventory, but it will also serve as a unique destination and result in a strong economic impact for our downtown.”

“Through a unique and creative financing plan, the KEDB and the developer were able to reach an agreement where new revenue sources have been identified to cover all aspects of the project,” said KEDB Chair Craig Denison. “As a result, Kingsport will be enhanced with its first-ever boutique hotel, which will no doubt spur future redevelopment in the downtown area.”

Butters’ previous renovation experience includes transforming an old silk mill into a 50,000-square-foot plaza with high-end apartments and commercial tenants, as well as renovating the old city hall building in Williamsport, Penn., into a 30-room boutique hotel. “This redevelopment is about more than restoring a building — it’s about preserving a piece of Kingsport’s story.” said Developer Tim Butters. “Our goal is to protect the hotel’s historic character while thoughtfully adapting it for modern use.”

Hilton Head Hospitality Management has more than 35 years of experience in the hospitality industry, including many years with Marriott International properties all across the United States. 

Kingsport Hosiery Mills (currently known as the Dobyns-Taylor Warehouse) began operations in 1917, producing 26,400 pairs of finished hose daily and grew to more than 400 employees by 1928. The facility closed in 1932 due to the Great Depression and was purchased by Dobyns-Taylor Hardware in 1945 to be used as a warehouse. 

The entire three-acre property was placed on the National Register of Historic Places in November 2020. 

The proposal is scheduled to go before the Board of Mayor and Aldermen later this month.

For more information:
Steven Bower
423-483-5542
stevenbower@kingsporttn.gov