Developers of the newly opened Holiday Inn Express in downtown Augusta sold the property last month for $10.3 million.
The former owners, who include hotelier T.R. Reddy and developers Mason McKnight III and William D. McKnight, began building the 118-room hotel at 444 Broad St. in February 2013 and opened it a year later. The property was sold Aug. 25 to a limited liability corporation, Narayan Augusta Hotel LLC, based in Stockbridge, Ga., according to a property transfer obtained from the Richmond County Clerk of Superior Court office.
“Bottom line, it was an investment for me,” said Mason McKnight, the founder and president of ACC Construction Co. Inc. “I thought it helped downtown, but we got a good offer on it and it was just a good chance.”
The new owner, Global Hotel Management Group, operates 16 other hotels in Georgia, South Carolina, Florida, Kansas, Mississippi and Nebraska. Their hotel chains include Holiday Inn, Hampton Inn, Wingate by Wyndham, Home 2 Suites, La Quinta Inn & Suites, Comfort Suites and Fairfield Inn & Suites.
Reddy said his plans after building the six-story hotel were to stabilize it and then sell the property. The goal of the hotel, he has said, was to help spawn the redevelopment of the lower portion of Broad Street.
Reddy considered the project a “big risk” but said he received positive feedback on the development.
“I got a lot more compliments than the money I made,” he said.
According to Chronicle archives, the 2.1-acre lot on Broad Street near Gordon Highway was purchased by Reddy at auction for $588,500 in 2009. At the time, the property housed a vacant Regency Inn.
Reddy and his business partners gutted the old hotel and rebuilt a 70,000-square-foot Holiday Inn Express that opened in March 2014. Reddy estimated then that the project came in slightly over budget at $8.5 million.
The property’s current market value is listed at about $5.8 million, according to the city’s online mapping system.
McKnight’s company is now building another hotel, Hyatt Place, on property off Mason McKnight Jr. Parkway near Interstate 20 in Columbia County. The 112-room, four-story hotel is part of a vast mixed-use development that includes CarMax, Gateway Crossing Luxury Apartments and Gander Mountain. It is scheduled to open by March 2016.