INVESTMENT HIGHLIGHTS
Irreplaceable Location in Downtown Chattanooga
The Holiday Inn Express & Suites Chattanooga Downtown is ideally located in the city’s thriving business and tourism corridor, surrounded by a diverse mix of corporate, institutional, medical, and leisure demand drivers. The Hotel is situated just half a mile from the headquarters of BlueCross BlueShield of Tennessee, the state’s largest health benefits provider. The company operates a 950,000 square-foot campus and employs approximately 4,000 people, serving as a cornerstone of Chattanooga’s corporate base. One mile from the Hotel is the headquarters of Unum, a Fortune 500 insurance company specializing in employee benefits and financial protection, with 2,900 employees supporting continued weekday demand. The University of Tennessee at Chattanooga (UTC), located 1 mile from the Hotel, spans 442 acres and recently reached record enrollment with 11,834 students. As a major academic and research institution, UTC generates year-round demand from faculty, visiting families, and event-related travel. The Hotel also benefits from its proximity to downtown’s top leisure attractions, including the Tennessee Aquarium, Creative Discovery Museum, Chattanooga Riverwalk, and the Chattanooga Choo Choo, each located within 1 mile. The Tennessee Aquarium draws over 750,000 annual visitors and houses more than 12,000 animals across 800 species, while the Chattanooga Choo Choo, a 24-acre entertainment complex built around a historic train station, welcomes over 700,000 annual visitors. Positioned half a mile from the 185,000 square-foot Chattanooga Convention Center, the Hotel is well situated to capture group and event-related business. The Convention Center hosts approximately 450 events per year and contributes an estimated $38 million in annual economic impact. Additionally, Erlanger Baroness Hospital, located 2 miles from the Hotel, is a 662-bed facility and designated Level I Trauma Center, recognized among the leading hospitals in Eastern Tennessee. Chattanooga is served by Chattanooga Metropolitan Airport, which transported a record 556,958 passengers in 2024 across 15 nonstop destinations.
High RevPAR Penetration Index with Post PIP Upside
The Holiday Inn Express & Suites Chattanooga Downtown achieved a RevPAR of $88.94 and a RevPAR Index of 139.0 for the Trailing Twelve-Month (“TTM”) period ending May 2025. The Hotel has maintained consistent RevPAR Index outperformance over the past three years, with penetration levels of 127.0, 133.8, and 139.0, respectively. This sustained track record reflects strong brand positioning, durable market share, and reliable topline performance. Completion of the required PIP will further enhance ADR growth and extend the Hotel’s RevPAR premium.
Cash-Flowing Asset with Operational Upside
The Hotel generated $3,072,246 in total revenue and $628,340 in NOI for the Trailing Twelve-Month (“TTM”) period ending May 2025, resulting in a 20.5% NOI margin. The Asset is currently institutionally managed, offering immediate in-place cash flow with a stable operational foundation. A more hands-on ownership approach or entrepreneurial management platform presents a clear opportunity to drive margin expansion, enhance operating efficiency, and increase bottom-line performance.
Institutional IHG Asset Offered Below Replacement Cost in a High-Growth Market
This Holiday Inn Express & Suites is an institutional-quality, IHG-branded asset offered significantly below replacement cost, presenting a rare acquisition opportunity in a city undergoing transformative investment. Downtown Chattanooga is benefiting from over $54 million in public commitment to its riverfront revitalization, alongside more than $300 million in private investment fueling redevelopment in the South Broad District. These major initiatives, combined with IHG’s global reservation platform and brand strength, position this asset to capitalize on downtown’s accelerating growth while preserving value through strong brand affiliation and turnkey operational readiness.
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ABOUT HUNTER
Hunter Hotel Advisors is the leading investment advisory firm focused exclusively on the hotel industry. Their seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 45 years of experience in both full and select-service single assets as well as portfolio marketing, the firm’s capacity in valuation, economic analysis, and industry relationships has allowed HUNTER to consistently maximize value regardless of market conditions.
Hunter Hotel Advisors is the founder and producer of the well-known and respected Hunter Hotel Investment Conference. Since their first conference in 1989, they have had a consistent focus on producing an educational and networking format based on real estate and finance for hotel owners.
