Grand Hotel 22500 Rhea County Hwy 42 Room Hotel Spring City, TN 37381 $3,945,825 CAD ($93,948 CAD/Room) 8.42% Cap Rate

GRAND HOTEL
Spring City, Tennessee
Keller Williams Commercial is pleased to present the Grand Hotel, a unique and high-performing hospitality asset located directly near Watts Bar Lake in Spring City, Tennessee (Rhea County). This well-maintained, multi-story property offers a rare blend of location, stability, and upside — serving as the closest hotel to three major regional employers: General Shale Brickyard, Huber Engineered Woods, and the TVA Nuclear Plant.
Originally constructed in 2007 and continually improved over time — including a major refresh in 2022— the Grand Hotel features 42 guest rooms, including 3 wonderfully-appointed suites, a welcoming lobby, and immediate adjacency to a full-service restaurant, 24-hour convenience store, and numerous walkable dining options. The property sits along Highway 27, with Norfolk Southern Railway directly in front, providing steady lodging demand from train crews and other industrial and transportation-related personnel.
The hotel enjoys a diverse and dependable guest base:
• TVA Nuclear Plant outage workers book blocks of rooms for 60+ consecutive nights during scheduled maintenance periods in April and November
• Fishing tourism from March through August drives strong seasonal bookings due to the property’s exclusive lakefront location on Watts Bar Lake
• Railroad crews, contractors, and traveling professionals contribute to year-round occupancy
• CLC Lodging contract just secured, guaranteeing a minimum of 200 additional nights per year
As the only hotel in Spring City coupled with the proximity to Watts Bar Lake — unlike competitors located on the adjacent Tennessee River — the Grand Hotel holds a unique and defensible position in the regional lodging market. This advantage is enhanced by Spring City’s ongoing growth initiatives, led by a newly elected mayor and city officials working to attract development, including a proposed 50+ home single-family subdivision just one mile away.
Spring City offers small-town charm with strong economic fundamentals, located just 20 miles from Dayton, 60 miles from Chattanooga, and within a short drive of Roane and Knox Counties. The hotel is well-positioned to continue benefiting from both industrial demand and tourism growth for years to come.
This is a rare opportunity to acquire a stable, income-producing hospitality asset with strong upside in a supply-constrained submarket.
PRIME TURN-KEY INVESTMENT OPPORTUNITY - STAFF WILLING TO STAY ON FOR NEW BUYER. HIGH CAP-RATE INVESTMENT. HOTEL COULD BE FLAGGED (HAS BEEN A HOWARD JOHNSON HOTEL IN THE PAST) HOWEVER OPERATES VERY WELL AS AN INDEPENDENT. 42 GUEST ROOMS + MANAGER'S QUARTERS ONSITE. ALL INTELLECTUAL PROPERTY OF 'GRAND HOTEL' SHALL CONVEY TO BUYER INCLUDING WEBSITE, NAME, AND LIKENESS.
* ADJACENT (LEASED) FULL-SERVICE RESTAURANT PARCEL (031I J 005.02) AVAILABLE AS WELL / LISTED SEPARATELY FOR $599,000 PROVIDING ADDITIONAL ANNUAL INCOME OF $48,000 INCLUDING 50 PARKING SPACES. PLEASE REACH OUT TO CHUCK DAVIS (423.645.3785) FOR DETAILS.