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Pennington Gap IDA signs agreement with developer for 70‑room hotel; county receives update
Summary
Lee County staff reported the Pennington Gap Industrial Development Authority signed an agreement with AP Hospitality to develop a 70‑room hotel with an indoor pool and rooftop bar, projected to open in 2026; funding and scope details remain pending.
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County administration told the Board of Supervisors on Dec. 17 that the Pennington Gap Industrial Development Authority has signed an agreement with AP Hospitality for a proposed 70‑room hotel featuring an indoor pool and a rooftop bar.
Staff (S3) said the development is expected to open in 2026 and could bring additional tourism and economic benefits to the town and county. Project scope, financing and total cost were not available at the time of the report; staff said the town and IDA will share funding and scope details as the planning process advances.
County staff also noted that moving the project through state tiering (site readiness levels) and completing environmental and engineering studies will take time; those studies have limited shelf lives, and achieving the next readiness level could require several months once engineering contracts are executed. The board was asked to note the development as an important economic‑development initiative while recognizing that project details and funding remain to be finalized.
