New hotels rise to meet tourism demand

moxy

The Moxy Hotel recently opened on King Street.

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Chattanooga is in demand, and the tourism and hotel industry is growing as a result.

“There are more people coming to visit,” Chattanooga Convention & Visitors Bureau CEO Barry White said. “Hoteliers don’t build if they don’t think they are going to be successful.”

New hotels have sprung up downtown and throughout the county in recent years and there are more openings in the works, he said.

The Moxy recently opened on King Street. The historic Read House recently underwent renovations and officials announced that Hotel Indigo is bringing a boutique hotel to West 6th Street. 🏨

The Edwin Hotel also recently opened at the end of the Walnut Street Bridge and it’s been almost a year since the new Westin opened on Chestnut Street, helping to animate the newly dubbed West Village.

By the numbers

11. New hotels opened in Hamilton County since 2013

1,400. This is the number of new rooms available in the county since 2013.

37. Hotel revenue percent increase from 2014 to 2017

10,000. The approximate number of hotels rooms in Hamilton County

73. Percentage of visitors who only stay in Chattanooga for one day

2.3 million. Number of rooms in Hamilton County booked in 2017

17. Percent increase of total hotel rooms booked last year

$1.1 billion. Tourism revenue the county took in 2017

DYK: Hamilton County has surpassed Knox County in annual tourism spending. We are in fourth place for the state, behind Memphis, Nashville and Sevier County.

Visitor destination

Chattanooga has long been a visitor destination with iconic sites, such as Rock City and Ruby Falls.

Quoteworthy

“Tourism is alive and well in Chattanooga,” White said. “I think the only really slower period we have is just after the holidays.”

👍 ProTip: Look for hotels during this slower period to land better deals.

Airbnb affect?

Some people wondered how the rise of Airbnb and other short-term rental properties would affect hotels, but that segment of business is growing and not at the expense of hotels, White also said.

There is less data available about these types of rentals, but White said it’s growing “significantly” year over year.

Prices, boutique trend

Fifteen years ago, you could snag a downtown room for less than $100 a night.

Now, most in the heart of the city are going to cost at least $120, depending on the demand.

“The product is changing and going to a higher average daily rate,” White said.

👍ProTip: It’s true for both Airbnbs and hotels, generally, the farther outside of downtown you go, the lower the prices are.

One trend that’s coming to Chattanooga is that of the boutique hotel. One of the city’s first downtown boutique hotels was probably the Dwell Hotel, formerly Stone Fort Inn, White said.

Chattanooga’s ViaNova Development has plans to convert The 300 apartment building on West 6th Street into another boutique establishment—Hotel Indigo.

The new Edwin Hotel also fits in that category, which generally includes fewer rooms and more of a local focus, White said.

For example, The Edwin features work from local artists, such as Kevin Bate, who created a large likeness of former Chattanooga Times publisher Ruth Holmberg for the hotel.

The Moxy has a large Chattanooga-themed mural and a snack bar stocked with items from local eateries, such as Dish ‘T’ Pass. And the back porch is called the Rail Yard, which is a reference to The Scenic City’s railroad history. 🚃

Quoteworthy

“Traveling is really more about the experience and I think people travel to Chattanooga to learn about our culture and our lifestyle,” White said. “That includes all the great assets like fantastic hotels, natural resources like the river and mountains, the people and the food. That’s what people will remember when they come to Chattanooga.”