A city of Chattanooga board on Wednesday morning voted to start the process of selling the Chattanoogan hotel.
The Chattanooga Downtown Redevelopment Corporation also approved a Request For Qualifications for a consultant to assist in the evaluations and proposals for the sale.
Daisy Madison, city finance director who heads the CDRC, said converting public conference centers to private ownership is a specialized area and a professional is needed so that the city can maximize the sale proceeds.
The resolution notes that the firm that has long operated the hotel and conference center for the city, Benchmark Hospitality, is merging with Gemstone Hotels & Resorts.
The city built the hotel at 12th and Broad with a focus on it being a conference center, though there was some opposition to local government getting into the hospitality business and competing with private hotels downtown.
The Chattanoogan initially had some financial difficulties, but has been profitable in recent years as the debt for constructing it has been reduced.
It features 199 guest rooms and suites, a day spa and 25,000 square feet of conference space. It also features three restaurants.