ASCENT HOSPITALITY OF Buford, Georgia, has bought a luxury independent hotel in Chattanooga, Tennessee.
The company, of which Nash Patel is CEO, announced on Oct. 8 it had closed on the $27 million acquisition of The Chattanoogan Hotel. The city of Chattanooga had previously owned the asset, which opened in 2001.
The city had been seeking a buyer for the hotel for the past 12 months, according to local news reports. A previous proposed deal to sell the hotel for $32 million fell through in the spring, and Ascent Hospitality stepped in with its bid.
Doug Marks, vice president of operations at Ascent Hospitality, said the deal is a “great opportunity” for the company. “With a great team in place and a commitment on making this a premier property, we’re excited for what lies ahead. The city of Chattanooga deserves a lot of credit for developing this property as a catalyst to stimulate the redevelopment of the area.”
Ascent Hospitality plans on renovating the hotel’s 198 rooms, meeting rooms and public spaces, including the pool. It will join the Curio Collection, a soft brand by Hilton.
The hotel is in downtown Chattanooga and six miles from the Chattanooga Metropolitan Airport. It is near the Tennessee Aquarium, Rock City and Ruby falls. It has 25,000 square feet of IACC-certified meeting space. Amenities include a spa, an indoor pool and three restaurants.
The city will continue to own a separate parking garage adjacent to The Chattanoogan. It will lease 160 spaces for a 20-year term with an extension option to the hotel.
Patel and John Tampa are co-founders of Ascent Hospitality, a hotel development and management company. Tampa is president.
Ascent Hospitality has a portfolio of 31 full-service and select-service independent and branded hotels. It has six hotels under development in Alabama, Georgia, Mississippi and Indiana.
Along with Ascent Hospitality’s investment in Chattanooga, other Asian American hotel companies have developed or are developing properties.
Vision Hospitality Group, based in Chattanooga, in September opened The Edwin, a $27-million independent luxury boutique hotel that is part of Marriott’s Autograph Collection. Mitch Patel is CEO of Vision Hospitality. The company Vision also is constructing other hotels in Chattanooga, including a Tru by Hilton next to its headquarters downtown, where it also owns a Hampton Inn and a DoubleTree by Hilton.
Hiren Desai, CEO of 3H Group Hotels, is developing a $19 million Moxy Hotel, an upper-midscale boutique brand by Marriott, in Chattanooga’s south side.