City, UPike release joint statement regarding Hilton purchase

JOINT STATEMENT FROM THE CITY OF PIKEVILLE AND UPIKE: The longstanding partnership between the University of Pikeville (UPIKE) and City of Pikeville is of tremendous value to our community. Recently, a national publication ranked Pikeville as a model rural community, in part because of our thriving university.

At times, the business of the City and the business of the University diverge, but we are proud that our foundational partnership always leads us to come together to make decisions that ultimately improve our community.

Recently, Pikeville city officials were informed that UPIKE has agreed to purchase the Hilton Garden Inn (HGI) from Bailey Hotel 2, Inc. Soon after, Mayor James Carter, City Manager Philip Elswick, UPIKE officials and a Hotel representative met to discuss this sale and consider all of its community implications. Because of the sensitive and confidential nature of the potential acquisition, UPIKE was unable to discuss the details until after the official announcement was made. All parties were eager to meet to discuss the market data and information. After the meeting, each side now has a better understanding of the current financials, the need and the circumstances that has led to the acquisition.

Each group has vowed to continue to work together for the betterment of the community. UPIKE has also informed their perspective board while the City Manager advised all members of the commission of the details.

The City of Pikeville recognizes UPIKE’s need for updated, modern student housing to continue its strong growth. By purchasing HGI, UPIKE will be positioned to provide top-tier housing for its current and future students.

While the City pursues a study to determine if additional hotel capacity is needed, the occupancy data suggests that Pikeville’s existing hotels will serve visitors with a high-quality, authentic experience in our city.

The Bailey Family and the late Frank Bailey are held in high esteem for their contributions to the City and Eastern Kentucky. His entrepreneurial drive resulted in a large and complex project that benefits Pikeville and the region, including the successful Hampton Inn. The Mayor, the Pikeville City Commission, the City Manager, UPIKE and the Bailey Family are working closely together to ensure that the sale of HGI by the Bailey Family to UPIKE will be beneficial for everyone involved. A strong partnership with open communication is expected by and beneficial to the citizens and businesses of Pikeville as well as the students pursuing educational opportunities at the university. Through this commitment, we can continue making Pikeville a sought-after destination for education, tourism, and raising a family. ###

PARTNERSHIP BACKGROUND Pikeville’s unique offerings has helped preserve our City through difficult times, including the loss of coal jobs that have been more severe in other parts of this region. With excellent community leadership and available opportunity at Pikeville Medical Center, UPIKE, Community Trust Bank and more, Pikeville is well-positioned to continue to thrive and grow.

The City of Pikeville and UPIKE have worked together for many years toward this position of strength.

The City closed a portion of Sycamore Street to improve the central area of UPIKE’s campus as well as a portion of Poplar Street to improve safety around a dormitory. The City provides and maintains, at some cost to UPIKE, several of the university’s athletic facilities. The parking garage provides free parking to UPIKE’s students and faculty very near to campus, and there are many more examples that could be listed. As in the past, the City will continue to work with UPIKE on this transition while ensuring that applicable zoning and parking requirements are met.

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