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Embassy Suites by Hilton Knoxville Downtown, TN Lodge
The Knoxville resort market’s latest efficiency traits are catching the eye of regional and nationwide buyers, and for good motive. With a slew of latest developments, the town is quick turning into a sought-after vacation spot for each enterprise and leisure vacationers.
Knoxville’s prime location, distinctive mix of sights, educational establishments, and pure magnificence has all the time made it a well-liked vacation spot for vacationers and enterprise vacationers. Town’s proximity to the Nice Smoky Mountains Nationwide Park has benefited the market and area, as that is essentially the most visited nationwide park by a big margin. Traditionally, the market mirrored many school cities, with a sturdy base of company demand fueled by companies related to and benefiting from the College of Tennessee, Knoxville. However during the last a number of years, development on the college, the town’s location as a handy stopping level alongside main interstates, and the area’s reputation amongst outside recreation fans have garnered vital consideration from new kinds of leisure and enterprise demand, boding properly for the town’s motels.
The College of Tennessee continues to be the regional financial system’s main supply of demand, and its popularity as a serious analysis college has continued to unfold during the last decade. Since 2016, enrollment has elevated by roughly 30%, with over 36,000 undergraduate and postgraduate college students enrolled in 2023. Main latest and ongoing initiatives on the college embody the brand new $129-million Tickle Faculty of Engineering constructing; two new residence halls, which is able to add 1,900 beds; a brand new scholar success constructing; an enlargement to the Haslam Faculty of Enterprise; and the brand new Croley Nursing Constructing. These amenities both have already opened or will open throughout the subsequent 5 years.
This development on the college has led to substantial funding within the neighborhoods surrounding the establishment. Many new eating places have opened during the last a number of years, whereas a brand new stadium for Minor League Baseball’s Tennessee Smokies is below building within the Previous Metropolis neighborhood. A number of new motels have additionally opened within the final a number of years, together with the Embassy Suites by Hilton, the dual-branded Courtyard and Residence Inn by Marriott, and the Graduate Knoxville. Regardless of the brand new provide, downtown resort efficiency has been sturdy popping out of the pandemic lows. Based on STR, occupancy registered within the mid-70s in 2023. Complementing this occupancy efficiency within the Downtown submarket is powerful ADR efficiency, with ADR growing in 2023 by roughly 40% from the 2019 stage. This development resulted in RevPAR eclipsing $140 in 2023.
Given the sturdy efficiency, a number of new motels are below improvement. Plans for the redevelopment of the Andrew Johnson Constructing are underway; this constructing might be transformed to a full-service resort dubbed the Lodge Americana, opening 2025. Furthermore, an AC Lodge by Marriott and a Tempo by Hilton are each anticipated to interrupt floor later this yr. Roughly a dozen different motels are rumored to be below improvement, illustrating the continued investor curiosity available in the market. A development in direction of boutique and way of life motels is clear in Knoxville, reflecting vacationers’ rising need for distinctive and customized experiences. With sturdy cultural influences domestically and regionally, these motels typically function a particular design, domestically impressed facilities, and a robust emphasis on visitor engagement.
The Knoxville resort market’s future seems promising, with sustained development of each provide and demand anticipated within the coming years. As the town continues to draw numerous leisure and enterprise vacationers, the hospitality sector is poised to thrive. The continued enlargement of the College of Tennessee and the recognition of East Tennessee as a leisure vacation spot ought to proceed to play a task within the metropolis’s long-term evolution and development.
Our work inside native markets empowers us to conduct main interviews with key market contributors. This method ensures we acquire real-time insights and present knowledge for every market we function in. For extra details about the Knoxville market or for assist making knowledgeable funding selections that align along with your objectives and danger tolerance, please contact Marc Greeley, your HVS Tennessee hospitality knowledgeable.
Sources:
STR and CoStar
College of Tennessee Reality E book 2023–2024
Nationwide Park Service
Marc is a Director and oversees the HVS Nashville Consulting & Valuation workplace. He focuses on quite a lot of hospitality consulting providers, together with valuations, feasibility research, and market research. His experience extends throughout a lot of the southeastern United States, protecting primarily Tennessee and Kentucky, in addition to Northern Georgia, Alabama, and Mississippi. He graduated in December 2018 from Michigan State College. He holds a Bachelor of Arts in Hospitality Enterprise with a minor in Actual Property Funding. Earlier than becoming a member of HVS in February 2019, Marc held internships with Bedrock Detroit and White Lodging Administration. Contact Marc at +1 (615) 426-8806 or mgreeley@hvs.com.
