The Chattanooga Downtown Redevelopment Corporation (CDRC) announced the sale of The Chattanoogan Hotel to Schulte Hospitality Group for $32 million.

The CDRC purchased a permanent easement from TVA for the purpose of constructing the Chattanoogan Hotel and the parking garage as part of a redevelopment initiative that included other projects like the Development Resource Center and expansion of the Trade Center.

“This has been a tremendous economic driver for Southside development in Chattanooga and will continue to attract visitors from across the country. This move builds on its success by putting it back on the tax rolls and paying off the debt associated with the facilities construction,” said Mayor Andy Berke.

The Chattanoogan has been managed by the Benchmark Corporation since opening in 2001.

All excess cash produced by the operations of the facility have been dedicated to retiring the debt associated with the facilities construction. The outstanding principal associated with the hotel is approximately $31.5 million, and the current sale price is $32 million.

Based in Louisville, Kentucky, Schulte Hospitality Group, who will purchase the facility, owns 102 properties in 26 states throughout the USA.