KNOXVILLE DOWNTOWN
Hodges Ward Elliott is pleased to present for your consideration the opportunity to acquire the fee simple interest in the 130-room Tapestry Collection by Hilton Cumberland House Knoxville/Downtown (the “Cumberland House”, “Hotel” or “Property”), located in the heart of Knoxville at the corner of White Ave and 11th Street, is steps from the city’s premier attractions and demand generators, including the University of Tennessee, Market Square, and the Knoxville Convention Center, as well as convenient access to the Smoky Mountains. With high barriers to entry, the Knoxville hospitality market has seen four straight years of record-breaking growth.
| Address: | |
| Year Built | Affiliation Date: |
2005 | 2020 |
| Guest Rooms: | 130 |
| Amenities: |
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| Parking: | Valet - $35/day |
| Interest Conveyed: |
Fee Simple |
| Labor: | Non-union |
| Affiliation: | Hilton |
| Management: | Peachtree Group Hospitality Management |
Investment Highlights
UNIVERSITY OF TENNESSEE
Located less than a mile southwest of the Hotel, the University of Tennessee (UT) is the state’s flagship university and premier public research institution. UTK is the largest university in Tennessee by more than 55% in terms of total enrollments, and it is set to have a record-breaking total enrollment of more than ~40,000 students for Fall 2025. The 115th-ranked university in the US offers 11 colleges and more than 900 programs, including some of their top programs of research, engineering, law, nursing, and the US’s 4th-ranked supply chain graduate program. Additionally, UTK is one of the top-ranked universities in the Southeastern Conference in terms of athletics, offering 14 different Division 1 sports teams with 23 national championships and 205 SEC championships won.
FULLY RENOVATED AND INSTITUTIONALLY MAINTAINED ASSET WITH PREMIUM AMENITIES
The Tapestry Collection by Hilton Cumberland House was completely renovated in 2020 both inside and out and is now one of the most unique hotels in the city. This Hotel is in the heart of downtown and easy walking distance to University of Tennessee (UT), the Knoxville Convention Center, and Market Square. Unique and representative of the city's textile history, the lobby includes design elements of a large weaving loom in the lobby, a wall of antique sewing machines, and symbolic buttons on display.
The Cumberland House features a modern Appalachia-themed restaurant, bar, and coffee shop. There’s a state-of-the-art fitness center and they offer complimentary bicycles if you’d like to get out and explore.
PRIME LOCATION IN DOWNTOWN KNOXVILLE
The Hotel is centrally located at the corner of White Ave and 11th Street in Downtown Knoxville, within walking distance of the city’s top attractions and demand generators. The Hotel is strategically positioned among the famed Market Square, the bustling nightlife of Old City, next door to World’s Fair Park, the Sunsphere, and the Knoxville Convention Center. The Hotel benefits from its location near Gay Street, less than half a mile from the historic Tennessee Theatre. The Theatre hosts more than 175 events annually, ranging from concerts, comedy shows, Broadway performances, and symphony and opera performances.
The Hotel is steps from the University of Tennessee, the flagship institution in the state. The university serves as a major source of demand for the market through annual events such as move-in day, graduation, sporting events, and conferences, among others. The university is rapidly growing and continues to invest meaningful dollars to carry the school into the future. The school’s enrollment continues to explode. Fall semester of 2024, the University realized a total enrollment of 38,728 students, representing 13 years of record growth.
HIGH BARRIERS TO ENTRY – LIMITED NEW SUPPLY
Downtown Knoxville is bounded by Summit Hill Drive to the North, James White Highway to the East, the Tennessee River to the South, and Henley Street to the West, encapsulating a six-block by ten-block area. Available land in the downtown area is hard to come by, making future hotel development increasingly difficult. The rising construction costs, tariff threats, and current monetary policy make new construction financing extremely challenging and mitigates the risk of long-term new supply, further insulating value on existing hotels and potentially putting positive pressure on ADR in the market.
The only other recent addition to the city’s lodging inventory was the Marriott Knoxville Downtown, which opened in February 2022 following a conversion and renovation from its previous use as a Holiday Inn. The Marriott is located approximately 0.4 miles from the Property. As such, the investment offering presents new investors the opportunity to acquire an asset in the growing sunbelt market that is aided by mitigated future supply.
KNOXVILLE MARKET OVERVIEW
Knoxville is conveniently located within a 5-hour drive of some of the largest MSA’s in the nation, including Atlanta, Nashville, Charlotte, and Cincinnati. Given the city’s ease of access, both by car and air, Knoxville has been steadily growing in popularity as a leisure travel destination. The market benefits from ample year-round demand generators in the downtown core but is also in close proximity to some of the more popular outdoor leisure destinations in the nation, including Great Smoky National Park. The outdoor oasis, in the midst of rapid visitation growth, welcomed over 12 million guests in 2024, representing 33% growth over 2011.
Knoxville’s proximity to such advantageous demand generators has provided strong tailwinds for its lodging market. While many cities across the nation were hit hard during the COVID-19 pandemic, Knoxville has been making new highs across most major metrics. The broader market has seen four straight years of record RevPAR growth, with the Property competitive set printing an April 2025 T12 RevPAR of $149.85
ROBUST COMMERCIAL DEVELOPMENT
Knoxville has seen substantial growth over the last several years, aided by a business-friendly economic environment. That trend should continue over the next several years as Knoxville continues to be the beneficiary of increased investment in the city. The city has a robust pipeline of commercial and leisure developments either recently opened or in planning.
Covenant Health Park, a new baseball and entertainment district in Old City, located less than a mile from the Hotel, opened last month (April 2025). The stadium and entertainment district serves as the new home of the Tennessee Smokies, the Double-A affiliate of the Chicago Cubs. The $200 million project was modeled after the renovation done to and around Wrigley Field over the last several years. The stadium itself was funded through public investment of $75 million, while the other commercial developments included in the master project cost ~$125 million and was privately funded (specifically by the current President of the University of Tennessee). The area has been completely transformed and reimagined with 630,000 SF of restaurants, retail shops, and residences. The city also recently welcomed Top Golf to its growing list of attractions in August of 2022 which is located at 11476 Outlet Drive. Moreover, multi-family projects are either recently opened or under construction including the 230-unit Church & Henley (opened 2022), the 63-unit Tribute 9opened 2022), and the 180-unit Stockyard Lofts (opened 2022).
COVENANT HEALTH PARK
CHURCH & HENLEY APARTMENTS
TOPGOLF NASHVILLE