Major Nashville hotels continue to sell to outside investors
- A small list of hotels in Nashville has sold for over $100 million.
- Outside investors are pouring millions into Nashville hotel properties.
Nashville hotels continue to be taken over by outside investors.
The Fairlane Hotel, an 81-room property known for its rotating themed pop-up bar, was sold in late June to Westdale Capital, a Dallas investment group, for $40 million, or nearly $494,000 per room.
The Fairlane operated for four years before trading hands.
Meanwhile, other luxury hotels in Nashville will hit the market soon after they open.
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Six months after the W Nashville hotel in the Gulch first welcomed guests, the property sold in March for nearly $329 million, the highest selling price for a hotel in the world. history of Nashville. The buyer: Xenia Hotels & Resorts, an Orlando-based hotel investment firm.
A week before the Conrad Nashville opened, the Broadwest Hotel was sold last month to Denver-based private equity group Northwood Investors for more than $119 million, according to land records.
“Projects like this attract investment to local neighborhoods and bring new economic impulses and opportunities to local residents and businesses,” said Bill Propst, president of Propst Companies, a Broadwest site developer, in A press release.
As hotels across the United States saw profits plummet in May, rates topped a 2019 pre-pandemic comparable for a third consecutive month, according to a July report from STR, a Henderson, AZ-based group. Tennessee, which provides global hospitality data.
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“Nashville is quickly becoming one of the nation’s premier destinations for leisure and business travel, as well as meetings and events,” said Javier Rosenberg, president of Northwood Hospitality of Northwood Investors.
Throughout Nashville’s history, few other hotel sales have surpassed the nine-figure mark.
In its debut in the city’s real estate market, New York-based Dreamscape Companies paid $169.7 million last June for the Sheraton Grand Nashville Downtown. At the time of the purchase, the commercial real estate group said it planned to invest $1 billion in the city over the next two years.
Another New York real estate company, AVR Realty Co., broke 2019 records by paying $125 million for the Downtown Hilton Garden Inn. In August 2019, the Downtown Nashville Hampton Inn was purchased for $101.5 million — or $490,000 per room — by Nakash Holdings, an investment group led by the founders of Jordache Enterprises, a clothing company.
At the height of the pandemic, the historic 125-room Union Station hotel was sold to Nashville Yards developer Southwest Value Partners for about $56 million ($450,000 per room).
The city should see two of its three 5-star hotels open in the coming years. The Four Seasons should open mid-2022 and the Ritz Carlton in 2025.
Arcelia Martin covers the growth and development of Tennessean, part of the USA TODAY Network. Contact Arcelia at [email protected] Follow her on Twitter @arcelitamartin.