Downtown Chattanooga still seeing hotel growth

Holiday Inn & Suites held a grand opening celebration Wednesday, December 16, 2015.
Holiday Inn & Suites held a grand opening celebration Wednesday, December 16, 2015.
photo Visitors tour the patio area December 16, 2015 at the grand opening of Holiday Inn & Suites .

FUTURE DOWNTOWN HOTELS

Westin:

* Developers: Byron and Ken DeFoor

* Location: 801 Pine St.

* Rooms: 200

The Edwin:

* Developer: Vision Hospitality Group

* Location: Walnut Street and Aquarium Way

* Rooms: 90

Chattanooga Bank Building:

* Developer: AMCA LP

* Location: Eighth and Market streets

* Rooms: 150

Source: Developers, River City Co.

Chattanooga tourism chief Bob Doak says downtown hasn't hit its peak yet when it comes to hotel rooms, with more on the drawing board this year.

"The market always seeks its level," the Chattanooga Area Convention and Visitors Bureau president said recently, adding that officials aren't seeing a saturation of rooms in the central city.

Late last year, a 140-room, $19 million Holiday Inn and Suites was the newest entry to downtown's hotel market. Located at Chestnut and Fifth streets, the locally based The Dynamic Group developed the full-service hotel that was expected to draw people interested in the riverfront as well as conventioneers.

"People want to be where the activity is," Mayor Andy Berke said about the new hotel.

Two new hotels are under construction this year and another has been announced.

Work on a 200-room Westin hotel downtown in the so-called Gold Building at 801 Pine St. started late last year. The hotel, which has been talked about since 2012, also will hold convention meeting space, said Kim White, who heads the nonprofit downtown redevelopment group River City Co.

"There are large conventions we can't handle here because we don't have enough hotel space," White said. The hotel would be part of a larger investment in the area by the building's owners, Chattanooga developers Byron and Ken DeFoor, she said.

Also, construction has begun on a boutique hotel on Walnut Street near Chattanooga's riverfront. Called The Edwin, the upscale, 90-room hotel will go near the Walnut Street Bridge.

Rooms will start at above $200 a night when The Edwin opens in spring 2017, officials said.

Additionally, the vacant Chattanooga Bank Building at Eighth and Market streets is slated to become a 150-room hotel.

The proposed $31 million price tag to renovate the 87-year-old structure would make it one of the most expensive hotels ever in Chattanooga. Construction hadn't yet started on the project early in 2016.

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