Jim Nizzo announced that he and his business partner Andy Spiros purchased the Ashland Plaza Hotel for $3.6 million. (Rachel Adkins|The Daily Independent photo)

ASHLAND, Ky. (AP) Two businessmen plan to redevelop an eastern Kentucky hotel in a move local officials hope will help revive the area's struggling economy.

The Daily Independent reported Jim Nizzo and Andy Spiros purchased the Ashland Plaza Hotel for $3.6 million. The men plan to renovate the hotel and turn it into a 4-star Delta Hotel by Marriott in Ashland.

Nizzo said the plan is to gut every room and build a new restaurant and two cocktail bars. Nizzo said the new hotel will have 152 rooms and will employ between 115 and 125 people. About 800 people in the area lost their jobs last year when AK Steel idled some operations at its plant on the Ohio River

Ashland officials plan to borrow $4.6 million to help with construction costs.

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