After closing in early March, Knoxville's one-of-a-kind hotel property has a new owner.
Hotel Knoxville and its property at 501 E. Hill Ave., was purchased by an out-of-state buyer for $8.3 million at an auction on March 16. The purchase includes all the equipment and fixtures within the hotel, from pillows and blankets to potted plants and luggage racks.
With 378 rooms and 26 meeting spaces, it is Knoxville's largest hotel.
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The property was transferred to BSPRT Knox Owner, LLC, according to county property records. This entity has the same address as Benefit Street Partners Realty Trust, a real estate investment trust company based in New York.
The company did not immediately respond to a request for comment.
The previous owner, Arkansas Knoxville Hotel LP, purchased the hotel out of foreclosure in September 2017 for $21.8 million.
The most recent appraised value of the property was $29.8 million, according to Knox County Property Assessor's records.
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The appeal of the pyramid-shaped building declined as other properties in the area have been renovated into modern hotels with access by foot to the heart of a growing downtown.
Most recently branded as a Marriott property, the hotel stopped taking reservations in early March and Visit Knoxville moved large groups it had booked there into new hotels.
In February, the hotel was reporting about a 20% occupancy rate. That figure, well below county averages, contributed to a county-wide occupancy rate decrease from 2018 to 2019.
Back in 2018, the hotel had announced $20 million in much-needed renovations to update the property and transition it to the Delta Hotel by Marriott brand name.
The work was supposed to include renovation of rooms, expansion of the restaurant and bar, addition of a coffee shop and opening of the skylights, which had been sealed.
The hotel opened in 1972 as a Hyatt Regency.
Email Brenna McDermott at brenna.mcdermott@knoxnews.com and follow her on Twitter @_BrennaMcD. If you enjoy Brenna's coverage, support strong local journalism by subscribing for full access to all our content on every platform.
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