The ProjectThe Dan River Hotel project will support the construction of a Hyatt Studios extended-stay hotel along River Street in Danville, Virginia. The approximately 58,999-square-foot development will include 120 apartment-style guest rooms designed to meet growing demand for extended-stay accommodations driven by continued business investment and tourism throughout the region. The project is being developed through a partnership between Lansing Melbourne Group and 1st and Main Development as part of the larger redevelopment of the former Long Mill site. In addition to the hotel, the broader 27.5-acre redevelopment is expected to include approximately 250 to 300 multifamily units, 65 townhomes, and future commercial development along Danville’s north riverfront. The CommunityThe project is located in a deeply distressed census tract in Danville, Virginia, with a poverty rate of 48.1%, median family income at 24% of the area median, and an unemployment rate more than twice the national average. The site is also located within a designated Enterprise Zone and redevelops a former brownfield property previously occupied by a textile manufacturing facility that closed in 2006, contributing to job losses and long-term disinvestment. Danville has experienced significant economic momentum in recent years, including growth in advanced manufacturing, gaming, tourism, and regional business investment. As visitation continues to increase, the need for modern lodging accommodations has grown alongside new residential and commercial development. |
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The Need
The Dan River Hotel will help address the growing demand for extended-stay lodging while supporting continued redevelopment along Danville’s riverfront. Rising construction costs and more limited access to traditional debt and equity financing following the COVID-19 pandemic created a financing gap that threatened the project’s timeline.
New Markets Tax Credit (NMTC) financing provides critical capital needed to advance construction and support broader redevelopment efforts in the surrounding community.
The Sponsor
Lansing Melbourne Group and 1st and Main Development formed a partnership to sponsor the project, which is being developed by Dan Hotel River St LLC. Together, the development team is leading the transformation of the former Long Mill site into a mixed-use destination that combines hospitality, housing, and future commercial investment along Danville’s River District.
The Impact
Construction is expected to create approximately 120 jobs. Upon completion, the hotel is expected to support approximately 25 permanent positions offering quality, accessible employment opportunities.
Beyond job creation, the project is expected to strengthen Danville’s hospitality infrastructure by expanding lodging options for business travelers, tourists, and individuals requiring longer-term accommodations. As part of a broader mixed-use redevelopment, the hotel is also expected to encourage additional commercial and residential investment along the north riverfront.
But‑for Analysis
Without NMTC financing, the project would not have moved forward as planned. Rising construction costs and constrained access to conventional financing following the COVID-19 pandemic created a significant financing gap.
NMTC financing helps bridge that gap, allowing construction to proceed while supporting redevelopment of a long-vacant brownfield site and continued investment in Danville’s River District.
