The as-yet-unnamed joint venture between Dollywood and Gaylord Entertainment Co. is to open in 2014, USA Today said.
"This project is what we need to attract more families and more individuals to Nashville," the Tennessean newspaper quoted Nashville Mayor Karl Dean as saying.
"With the business traveling sector already locked up, by adding this component to boost our ability to attract leisure travelers, Nashville is going to be unstoppable as a tourist destination."
Parton can now be seen in the music-themed movie "Joyful Noise."
Notable deaths of 2014 [PHOTOS]