![Sheraton Memphis Downtown, Memphis’ Largest Hotel, Hits the Market for Sale Sheraton Memphis Downtown, Memphis’ Largest Hotel, Hits the Market for Sale](https://usatribunemedia.com/wp-content/uploads/2024/02/1-5.png)
The largest hotel in Memphis is currently on the market. The 590-room Sheraton Memphis Downtown Hotel, connected to the Renasant Convention Center, is being offered for sale by Hunter Hotel Advisors, an Atlanta-based commercial real estate agency. Tim Osborne and Spencer Davidson, both Senior Vice Presidents at Hunter, are handling the deal.
Sheraton
The listing, made public about two weeks ago, does not disclose the sale price, and access to the data room requires a confidentiality agreement. Hotel Memphis LP, a joint venture of Starwood Capital Group and Schulte Hospitality Group, acquired the property in 2017. The Sheraton, a premium flag of Marriott International, employs around 200 people.
Memphis Mayor Paul Young sees the sale as an opportunity for a new hotel ownership group to bring enthusiasm and experience to the partnership with the Renasant Convention Center, enhancing the convention experience in Memphis. Hotel Memphis secured a $43 million debt from Bank of America in 2017, and Starwood declined to comment on the sale.
In October 2022, Starwood received a 30-year PILOT (payment-in-lieu-of-taxes) from the Center City Revenue Finance Corp., intending to expand the Sheraton by 300 rooms. However, it was revealed that Hotel Memphis did not close on the approved PILOT. Any new owner would need to reapply for incentives. The Sheraton is currently fully taxable as the original PILOT expired in 2023.
The for-sale listing emphasizes that renovating the Sheraton would be more cost-effective than building a new structure. The hotel generated $29,276,362 in total revenue during the Trailing Twelve Month period ending September 2023, showcasing a 20.76% year-over-year increase as the hotel and market metrics recover in the post-COVID environment. The listing suggests an opportunity for an investor to acquire the largest hotel in Memphis, directly linked to the premier convention facility, at a significant discount to replacement costs and implement a comprehensive renovation plan for substantial growth.