The Knob Hill Inn, a Ketchum luxury hotel that has been on the market for two years, will be auctioned to the highest bidder regardless of price on July 12, according to Concierge Auctions.
The hotel was originally listed for $17 million. The price was marked down several times and nearly sold to nonprofit Sun Valley Adaptive Sports, which wanted to buy it for conversion to a rehabilitation center for wounded veterans. However, that deal fell through last fall when the organization couldn't raise the $10 million needed to buy the hotel and renovate it. Another deal to sell the inn—and keep it as a functioning hotel—was supposed to close Feb. 28, but also fell through, according to real estate agent Joshua Wells.
This hotel's recent history is similar to another high-profile Ketchum property auctioned because of failure to sell—the Chilali condominiums.
Chilali Lodge, at the corner of Sun Valley Road and Second Avenue, has 25 units. Until the auction on Feb. 19, only three had been sold since construction ended two years ago. Two were deed restricted for a below-market price. The remaining 22 units had remained empty ever since, still brand new and completely unused. Union Bank acquired them after they changed hands a few times, and put 11 up for auction. All 11 sold for a total $8.5 million, which was $1.26 million above the minimum bids.
The Knob Hill Inn auction will take place in cooperation with listing agent Pam Colesworthy of Sun Valley Sotheby's International Realty. She said Concierge Auctions is a preferred auctioneer for Sotheby's.
"The new owners will choose from many existing possibilities," she said. "They can continue to run the inn as-is or redesign and redevelop it into an entirely new experience."
The hotel is on 1.2 acres along Main Street at the northern end of Ketchum. A time has not yet been given for the live, onsite auction, but pre-registration is required. Visit www.knobhillauction.com for details.
Trevon Milliard: email@example.com