A hotel in the heart of Asheville will close its doors for good on Tuesday after the city passed a moratorium on new hotel construction.

The Asheville Hotel and Suites in downtown Asheville will cease to operate and its tenants will vacate by the end of the year, the city said in a statement.

The decision comes after the City Council voted earlier this month to enact a moratorium that allows the city to allow new hotel development without new licenses.

The city is expected to announce new hotel projects during a special city council meeting on Monday.

The moratorium also lets the city cancel or extend other permits, the statement said.

The ban has been in place since January, when the city began issuing hotel licenses to hotel owners who are willing to relocate their businesses to the city.

It expired on May 15.

City officials said it’s a huge deal for the city and for its tenants.

“We’re going to do what we can to make sure the city is there for its residents,” said David Lebenschmidt, the mayor of Asheville.