The Chattanooga Downtown Redevelopment Corporation has sold the Chattanoogan Hotel to Schulte Hospitality Group for $32 million dollars. The CDRC purchased a permanent easement from TVA for the purpose of constructing the Chattanoogan Hotel and the parking garage as part of a redevelopment initiative that included other projects such as the Development Resource Center and expansion of the Trade Center.
“This has been a tremendous economic driver for Southside development in Chattanooga and will continue to attract visitors from across the country. This move builds on its success by putting it back on the tax rolls and paying off the debt associated with the facilities construction,” Mayor Andy Berke says.
The Chattanoogan has been managed by the Benchmark Corporation since opening in 2001. Over the last three years, The Chattanoogan has hosted approximately 750 meetings. Attracting 171,000 visitors per year in room nights, The Chattanoogan has served more than 800,000 food and beverage customers and since opening, has paid more than $1.2 million in state and local sales taxes and nearly $600,000 in city and county hotel motel taxes.
All excess cash produced by the operations of the facility have been dedicated to retiring the debt associated with the facilities construction. The outstanding principal associated with the hotel is approximately $31.5 million – and the current sale price is $32 million.
“The interest we saw in this property is a testament to both the fiscal stewardship of the CDRC and the management of Benchmark Hospitality. I’m thankful to both for their leadership and look forward to continuing to work together to spur economic growth across the city,” Berke says.
Schulte Hospitality Group, who will purchase the facility, owns 102 properties in 26 states throughout the USA.
Source: City of Chattanooga