Capital Plaza Hotel Redevelopment Targets Spring 2027 Reopening

The Capital Plaza Hotel is slated to reopen in spring 2027 following a massive redevelopment project, The Lane Report reported.

Franklin DevCo LLC is leading the transformation of the 163-room downtown Frankfort landmark. The renovation aims to modernize the facility, which has served Kentucky lawmakers, business travelers, and visitors for over four decades.

The project introduces several high-end amenities to the capital city, including a multilevel penthouse and a new grand ballroom. Developers also plan to add approximately 25,000 square feet of meeting and event space to accommodate growing professional needs.

“We know people in Frankfort have a personal connection to this hotel, and we take that responsibility seriously,” said Colin Underhill, representing Franklin DevCo.

“Our focus is on getting the details right and making improvements that people will appreciate for years to come. We’re invested in the long-term success of this property and this community,” Underhill added.

Beyond guest accommodations, the redevelopment includes two new restaurant concepts and a lobby bar. These additions are intended to provide fresh dining and entertainment options for both hotel guests and local residents.

The hotel will continue to operate under the Capital Plaza Hotel name throughout the duration of the construction. OTH Hotels & Resorts has been selected to manage the property once the renovations are complete, utilizing its existing hospitality management experience.

The revitalization of this site is tied to broader economic trends in the region. Nearby distilleries such as Buffalo Trace, Castle & Key, and Whiskey Thief continue to draw many tourists to the area as Kentucky's bourbon industry expands. A modernized hotel provides the necessary infrastructure to capture this influx of visitors.

The redevelopment relies on a complex structure of financial incentives and local cooperation. The project is supported by several layers of economic assistance, including:

State and federal historic rehabilitation tax credits
Kentucky tourism development incentives
An industrial revenue bond issued through Franklin County and the Franklin County school system

The City of Frankfort is also providing support through its cooperation regarding the city-owned parking garage that serves the hotel property.

By expanding its capacity for conferences, legislative gatherings, and business meetings, Frankfort aims to strengthen its position as a destination for both state business and tourism. Additional design details and specific announcements regarding new amenities are expected in the coming months.