More than four months after a city agency voted to sell The Chattanoogan hotel and conference complex, there is still no agreement for the sale of the city- owned facility.
Last October, the Chattanooga Downtown Redevelopment Corp. approved a $32 million cash offer from the Schulte Hospitality Group in Kentucky to acquire The Chattanoogan after three rounds of bidding pushed up the sales price. But Chattanooga Finance Director Daisy Madison, chair of the Chattanooga Downtown Redevelopment Corp., said last week there is still no signed agreement for the sale of the city-owned hotel.
“It turns out these kinds of deals take a while,” Madison said. “As long we have some positive discussions [toward the sale], we will strive to finalize the transaction. I had hoped that this would be closed by now, but it has not.”
Ray Schulte, chief operating officer for the Schulte Hospitality Group, declined Monday to comment on the status of any purchase. Schulte operates 102 hotels in 26 states, but company officials have repeatedly declined to discuss their plans for The Chattanoogan if Schulte ultimately buys the hotel.
The Chattanoogan is currently operated for the city by Benchmark Resorts and Hotels which is expected to continue to run the hotel until any sale is completed.