HWY 321 Townsend TN 37882

17-Key Boutique Lodge | Gateway to Great Smoky Mountains | $2.2M | 10.4% Going-In Cap

Rare off-market assignment opportunity to acquire a cash-flowing 17-key boutique lodge in Townsend, Tennessee — the "Peaceful Side of the Smokies" — just 1 mile from the most visited entrance to Great Smoky Mountains National Park (12M+ annual visitors).

The Asset. Solid-construction lodge built in the 1980s with saltwater pool, commercial hospitality zoning, and good bones throughout. Cosmetic updates needed — this is a repositioning play, not a gut renovation. Current basis of $133K/key against replacement cost of $250K+/key means you're buying at a significant discount to what it would cost to build.

The Numbers. Validated 2025 actuals show $346K net revenue and $229K NOI on just 36% occupancy at $76 ADR — the result of 20 years of passive owner-operator management with virtually zero marketing spend ($1,200/year). This property cash-flows from day one and covers debt service at current performance. The upside is enormous: the local market supports $150–180 ADR for a repositioned boutique product, and comparable properties run 60–65% occupancy. A stabilized asset at $180 ADR and 62% occupancy projects to $300K+ NOI and a valuation north of $3.7M at an 8% cap.

The Market. Townsend sits at the doorstep of the most visited national park in the United States with zero modern boutique hotel competition. Budget motels in the area trade at $80–110/night. Airbnb cabins pull $250–400. There is a wide-open gap at $180/night for a design-forward, professionally managed lodge — and nothing in the pipeline to fill it. The demand drivers are structural: 12M+ park visitors annually, a 25-minute drive from Pigeon Forge, 30 minutes from Gatlinburg, and a growing remote-worker and experiential-travel demographic.