HAMPTON, Va. (WAVY) – A closed Macy’s store in Hampton will soon become a multi-million dollar upscale hotel.
During a meeting Wednesday, council unanimously voted to approve an agreement that provides up to roughly $2.1 million in incentives to T Peninsula Hotel VA.
The developer is expected to build a hotel with at least 120 rooms and a large meeting room space on the site at Peninsula Town Center.
The deal was first approved by the city’s Economic Development Authority on Tuesday.
Leonard Sledge, the authority’s director, told 10 On Your Side the hotel will be a “tremendous benefit” to the city, serving as a means of driving tourism. He adds the development will contribute to an already vibrant mixed-use town center.
Carl Dehni, who works nearby, agrees.
“I think it’s probably a pretty good use of it, those types of hotels get good use around here.”
Macy’s announced it was closing the store in early 2016, along with the Military Circle Mall and Chesapeake Square Mall locations.
“The world of retail has changed, particularly big box retailers,” Sledge said. “It’s unfortunate that Macy’s is going through the challenges it’s going through nationally, we were not immune to that.”
The company joins a growing list of retailers closing some locations.
The Chesapeake Square Mall also lost its Sears. Military Circle’s JCPenney closed its doors, too.
Like the Hampton Macy’s, the Military Circle JCPenney is also being revamped. 10 On Your Side told you earlier this month that Norfolk officials announced the space will soon become the Optima Health Community Care Coordination Center.
People like Amy Wharton aren’t surprised that the big box retailers aren’t being replaced by big box retailers.
“Obviously they’re all going under,” she said.
But according to Sledge, research has indicated that the city is in need of more hotels to attract conventions.
The hotel at the Macy’s site could be completed within 18 to 24 months.