Development of New Hotel + 100 Single Family Homes Discussed for Williamsburg
Owners of 17+ acres near intersection of Penniman Road and Page Street recently consulted with City planners after rejection of prior proposal in 2024
Hilton Grand Vacations, owner of BlueGreen Vacations, and 17+ acres at the corner of Penniman Road and Page Street in Williamsburg, has reached a preliminary sales agreement with national homebuilder D.R. Horton to construct a new hotel and around 100 single-family homes on the site. Information about the potential development was received from the City on July 30, 2025 in response to a Freedom of Information Act (FOIA) request submitted by the Williamsburg Independent. The FOIA response does not indicate that any applications or proposals have been formally submitted by the developers.
Hilton Grand Vacations (HGV) acquired the property in January 2024 through its $1.5 billion purchase of Bluegreen Vacations. Builder D.R. Horton, which describes itself as the nation’s largest homebuilder, is also well-known locally. For example, the company is planning to build 199 homes in Williamsburg at Redoubt Ridge at Quarterpath near Doctors’ Hospital. They are also listed as the preferred builder in the Liberty Ridge development.
The concept to develop a hotel and single-family homes on the site follows in the wake of the City Council’s rejection of another residential proposal back in 2024. That plan called for 232 housing units, including apartments and townhomes, as well as a small amount of commercial space.
After the rejection of the plan in February 2024, the landowner’s discussions with the City’s planning department began almost immediatly in order to clarify what residential uses the City might approve. A meeting was subsequently held on March 21, 2024, apparently to discuss the City’s preferences for the site.
Over a year passed before the landowners reached out to the City about the site again. A representative of the project recently sent an email to City planners on June 30, 2025, stating that “the property owner (Hilton Resorts) reached a preliminary sales agreement with DR Horton to develop the property for a hotel on the corner and +/- 100 single family homes in the rear.”
Subsequent email exchanges indicate that representatives for the landowner met again with City planning officials on July 28, 2025 to discuss the project. This was the latest communication about the project received as part of the City’s FOIA response.
Failed proposal for site in 2024
The renewed interest in the Penniman Road site follows a failed development effort back in 2024. The rejected proposal called for 232 residential units—182 multifamily apartments and 50 townhomes. Most of the units were intended to be rental housing, though a limited number of townhomes were to be offered for sale. The plan also included 9,000 square feet of commercial space.
In February last year, the City Council voted 4–1 to deny the rezoning and Special Use Permit request for the property; former Councilman Caleb Rogers was the lone vote in favor of the changes.
The proposed zoning change would have changed the site from Corridor Business District (B-2) to Limited Business Residential District (LB-3) to allow residential development not permitted under the existing zoning. According to the City, the current B-2 zoning is intended for businesses that will primarly be accessed by vehicles, with emphasis on tourism-related uses.
While the B-2 zoning generally prohibits multifamily housing, the proposed LB-3 zoning supports a mix of residential, commercial, office, and hospitality uses. The City indicated that each of these are in line with the Comprehensive Plan for the Northeast Triangle. While the change would allow for residential units like apartments and townhouses, these uses still require a special use permit.
The applicant had proposed several other voluntary proffers, including financial contributions toward affordable housing and traffic mitigation. Their plan also included amenities such as a pool, clubhouse, dog park as well as a public art installation.
Planning recommendation - 2024 proposal
City planning staff formally recommended denial of the 2024 proposal, citing its failure to meet goals for integrated mixed-use development under the LB-3 zoning district and its incompatibility with the surrounding neighborhood. Staff concluded that while the applicant added limited commercial and public art elements, these were not meaningfully integrated and did not meet the spirit of the Comprehensive Plan. Staff found the proposal would be adequately served by public services and accepted the applicant’s traffic mitigation proffers as reasonable. The Planning Commission supported the rezoning to allow housing under LB-3 but recommended denial of the Special Use Permit for this particular proposal.
Public response - 2024 proposal
At the February 8, 2024 City Council meeting, multiple speakers offered comments for and against the proposed development on Penniman Road. Opponents’ concerns focused on scale, traffic, infrastructure, and compatibility with the surrounding area. On the other end of the debate, supporters pointed to the site’s redevelopment potential and the need for additional housing options, while also pointing out that the site has remained vacant for years and that redevelopment could bring tax revenue and economic benefits.
City Council concerns & rejection - 2024 proposal
City Council’s rejection of the 2024 development proposal for the Penniman Road site was largely shaped by concerns that the plan relied too heavily on dense rental housing and did not offer a meaningful commercial component, falling short of the city's long-term vision for mixed-use development.
Council members expressed concern about the high number of rental units—182 apartments and 50 townhouses, with only 12 designated for sale—citing a pattern of recent approvals that leaned toward rental-heavy developments. Some questioned whether the proposal truly met the city’s housing needs or would primarily serve students, given the expected cost of units and limited opportunities for home ownership.
Overall, the council voiced a preference for a lower-density, ownership-oriented project with a stronger commercial presence—one more in line with the Northeast Triangle’s envisioned character.
This story will be udpated as more information becomes available.
The writer used AI tools and the following sources:
City of Williamsburg FOIA response (download file above)
Williamsburg City Council meeting - Video - February 8 2024
Williamsburg City Council meeting - Agenda Item - February 8 2024
Williamsburg - Interactive Dashboards: Parcel Data - Maps - Property Cards
Hilton Grand Vacations Completes Acquisition of Bluegreen Vacations
D.R. Horton corporate website
“DR Horton is the preferred builder in Liberty Ridge”
Williamsburg Independent: Redoubt Ridge at Quarterpath Moves Forward with Special Use Permit
