The Bluff City's largest hotel property recently went on the market.

The 600-room Sheraton Downtown Memphis at 250 N. Main St. was listed for sale about three weeks ago, according to Wayne Tabor, president of the Metropolitan Memphis Hotel & Lodging Association.

Hotel Memphis LP, which is a joint venture between Starwood Capital Group and Schulte Hospitality, acquired the Sheraton in 2017. Starwood couldn't be reached for comment on the sale of the hotel.

Here is a look at what we know about the listing, the property and future plans.

Who is handling the sale of the Sheraton Downtown Memphis?

The hotel is being marketed by Atlanta-based commercial real estate agency Hunter Hotel Advisors, which Tabor touted as one of the most recognizable hotel brokerage firms in the nation. The company has registered more than $4 billion in total sales and 475 total properties sold since 2020, according to its website.

Spencer Davidson, senior vice president for Hunter Hotel Advisors, told The Commercial Appeal in an email that the pricing for the Sheraton cannot be disclosed at this time. Davidson and Tim Osborne, senior vice president for Hunter, are the brokers managing the deal.

Tabor said his understanding is that the real estate agency is looking in the neighborhood of $42 million or $43 million for the Sheraton.

The hotel offers more than 14,000 square feet of event space, with an additional 350,000 square feet of space available at the Renasant Convention Center.

DOWNTOWN MEMPHIS: Memphis Tourism buys Memphis in May's Downtown headquarters for $1.55 million. Here's why

What happened to the Sheraton's expansion in Downtown Memphis?

The Sheraton was expected to undergo a $226 million expansion.

Starwood Capital Group in October 2022 had been approved for a 30-year payment-in-lieu-of-tax incentive and 5% tourism development zone surcharge by the Center City Revenue Finance Corp. (CCRFC), a Downtown Memphis Commission board. The hotel group planned to renovate the entire hotel and construct a new tower to add 300 rooms to the 600-room hotel.

James McLaren, an attorney for Adams and Reese in Memphis, said CCRFC didn't finalize the PILOT lease because the Sheraton owners notified CCRFC that it wasn't moving forward with the expansion.

The Downtown Memphis Commission didn't respond to The Commercial Appeal's request for additional comment.

The Sheraton, which is connected to the Renasant Convention Center by a skywalk, is considered vital to the health of the Renasant Convention Center and to Memphis’ convention business. A $200 million modernization project was recently completed to the convention center.

Tabor described the current state of the Sheraton as being “rundown,” and the hotel recently lost the contract that it had to cater food service into the convention center.

MEMPHIS DEVELOPMENT: Major Memphis multifamily project is switching up its design — but the lazy river remains!

What could be next for Sheraton in Downtown Memphis?

Tabor hopes whoever purchases the hotel will put some money into making it a quality hotel and help the city’s convention efforts. However, he is concerned if the Sheraton is bought by someone who doesn't want to focus on convention business.

“What I’m afraid of is there are a lot of non-convention center operators out there, that would look at Memphis and thinking they could take it [Sheraton] a notch or two down and sell the rooms based on tourists and not conventions or not really have a lot of convention amenities in the hotel."

Corey Davis is the Collierville and Germantown reporter with The Commercial Appeal. He can be reached at Corey.Davis@commercialappeal.com or 901-293-1610.

This article originally appeared on Memphis Commercial Appeal: Sheraton Downtown Memphis is up for sale: Here's what we know