The shell of a vacant four-story hotel sitting partially finished on Sylva’s main drag for three years is finally going somewhere.
Developers from Greensboro bought the vacant hotel along N.C. 107 for $850,000 and are promising to pump an additional $2 million into completing the project.
The hotel was partially constructed beginning in 2008 and has widely been considered an eyesore. It was supposed to become a Clarion Inn, but the original developers TJ Investments, the father and son team Thomas and John Dowden of Cashiers, went into bankruptcy. Alpharetta Community Bank of Georgia, which foreclosed after the men failed to payoff a $5-million loan, owned the hotel. The newly formed Sylva Hotel Group recently bought the property for $850,000.
Developer Stephen Austin said he and his two partners in the project have settled on a national hotel chain to brand the 78-room hotel, which includes a convention room and space for a restaurant, but added that they aren’t ready to disclose which one.
He said the bargain-basement purchase price made the deal a good venture.
“Sylva is not an extremely deep hotel market,” he said. “We’re going to do our very best to have a hotel that is worthy of our business.”
Austin said that the men’s pre-purchase market studies indicated that Sylva hotel occupancy rates run at about 50 percent, lower than the national average of more than 60 percent. Even after figuring that higher vacancy rate into the business plan, Austin said the getting-in price made it a sound investment.
“If you are going to build a new hotel, it helps to get in at a good price,” he said. “We’ll have a total of about $3 million in the project. We’re also excited to be able to take a piece of property and produce something of value, create an asset for the community.”
Austin said he and his partners are hoping to start construction soon and open the new hotel this year.
Town Commissioner Harold Hensley, who lives near the hotel, said he is excited that it sold and is going to be finished and used.
Five years ago, the town OK’d an exemption to its building height restrictions, allowing the proposed Clarion Inn to have four stories instead of three. The developers at the time claimed they needed a 75-foot maximum height instead of just 45 feet as mandated by town regulations.
Hensley said he believed the purchase was indicative that the local economy is starting to shake off the recessionary blues.
“I don’t know much about the details, but to me, it’s excellent news that this can move forward and progress,” Hensley said.
Paige Roberson, assistant to the town manager and director of the town’s Main Street program, echoed Hensley’s optimism. She said that at least two other vacant stores in town have seen movement recently. Cope’s Superette, a downtown newsstand that closed in December, is being reopened as an antique store; the crematorium of Moody’s Funeral Home is being repurposed as a doctor’s office.