Thirty years after its revival, Hotel Roanoke ownership could again change hands.
City officials and Virginia Tech are discussing a possible hotel sale, according to university spokesperson Mark Owczarski. Discussions are still in early stages, officials said, for a potential sale initially reported by The Roanoke Rambler.
“All that has happened to date is that Virginia Tech and Virginia Tech Foundation, Inc. have approached the city with the idea to consider and explore the sale of the Hotel Roanoke and Conference Center,” Owczarski said in an email. “The City of Roanoke and its council are supportive of this exploration.”
Altogether, the property at 110 Shenandoah Ave. NW is valued at more than $62 million, according to city tax records. Mayor Joe Cobb said it’s hard to put a value on such a high-quality hotel.
“It’s such a centerpiece of our city and our region,” Cobb said. “We certainly don’t want to see any interruption of the level and quality of service that’s provided. Those are just some of the unknowns when we’re discussing something like this.”
Cobb said he’s struggling to imagine changing the 30-year partnership between university and city that revived Hotel Roanoke from run down to crown jewel.
Citizen, city government and university efforts in the 1980s and ’90s restored the hotel originally built by Norfolk and Western Railway in the 1880s. Hotel Roanoke reopened with a new conference center in April 1995.
No academic programs are based in the hotel, Owczarski said. He said Virginia Tech wants to position the hotel and conference center “in a way that maximizes sale potential and long-term community benefit.”
“In short, the university seeks to reinvest in Roanoke,” Owczarski said. “The establishment and growth of the Virginia Tech Carilion School of Medicine and Fralin Biomedical Research Institute at VTC, among other partnerships, are clear indicators of that.”
It does make sense if the university wants to focus more on the biomedical research happening in Roanoke’s innovation corridor, rather than owning a hotel, Cobb said.
“I get that from their perspective,” Cobb said. “But I can also say the arrangement we’ve had for the last 30 years has been very beneficial to our city and to our region.”
The hotel has been owned since 1989 by the Virginia Tech Foundation, city records show. The attached conference center is owned by a public commission, jointly controlled by the city and university, Owczarski said.
“Given the hotel’s current strength and success, along with operating and franchise agreements nearing renewal, the timing for this exploration is optimal,” Owczarski said. “Any decisions about how to position the conference center in or with a potential sale will require our alignment.”
The hotel by itself is assessed at $38.2 million, according to city tax records. The conference center is separately assessed at $20.6 million, records show. Three other parcels, including the parking areas, are assessed at a combined $3.6 million.
“The potential sale would allow Virginia Tech to deepen its Roanoke presence and commitment in ways that not only align with the university’s strategic priorities in teaching and research, but also will heighten Roanoke’s presence as a hub for innovation,” Owczarski said. “We want to imagine and work together towards a new and exciting chapter for the greater Roanoke community.”
Clarity is still required on several considerations, Cobb said. For instance, the city earlier this year issued construction bonds for some expansion work, which might be impacted by a potential sale, he said.
Who would be interested in buying a 300-room hotel? It’s currently operated under the brand Curio Collection by Hilton.
“It’s a significant investment,” Cobb said. “It’s got to be a caliber of a company – or an individual, I suppose – that could make that level of investment.”
Similarly, Owczarski emphasized that the process is still in early stages.
“We are just beginning conversations to consider and explore this idea, and we are all interested in what this potential sale could do for Roanoke,” Owczarski said. “Virginia Tech has invested greatly in Roanoke and the region for decades.”
Luke Weir (540) 566-8917
luke.weir@roanoke.com
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