The Nittany Lion Inn's conversion will result in layoffs for approximately 79 employees.
Cancellation requests will be reviewed on a first-come, first-serve basis.
The group will receive regular updates on Penn State's initiatives to combat racism and make recommendations to the full board.
"We encourage all Americans to take time today to educate, reflect and acknowledge the significance of this moment in our history."
Penn State will provide remote learning options for students who can't return to campus this fall.
The renovations include a newly repaired ear an all-around deep cleaning.