Georgia-based Ascent Hospitality has purchased The Chattanoogan Hotel from the city of Chattanooga for $27 million.
Officials said the sale of the building will generate an estimated savings of $23 million over the remaining life of the bonds. This includes more than $280,000 in annual property taxes revenues for the city.
Mayor Andy Berke said, "The Chattanoogan Hotel is one of our city's most important assets and Ascent Hospitality is the ideal partner to make it every aspect of it even better. I am grateful to Mr. [John] Tampa and his team for their patience, professionalism, and commitment as we have worked on the details of this sale,. We have structured a transaction that will provide immense benefit to the taxpaying public of Chattanooga, while enhancing the experience to the many thousands of business and recreational travelers that visit this hotel every year. My thanks to everyone at the City of Chattanooga who has worked so diligently on this process for so long."
The Chattanoogan Hotel opened in 2001 and has helped spur the revitalization of the Southside neighborhood.
John Tampa, president and co-founder of Ascent Hospitality, said, "Ascent Hospitality is looking forward to making a substantial commitment to the Chattanooga market and is very proud to add the Chattanoogan Hotel to our portfolio. Chattanooga is one of the most dynamic and attractive metro areas in the Southeast.
“As demand for premium lodging continues to grow here, Ascent looks forward to making substantial investments that will offer all of our guests an outstanding experience in Chattanooga. This has obviously been a time-consuming and complex endeavor, but we are excited to be part of this great city."