Hotels across Nashville continue to be scooped up by outside investors.
The Fairlane Hotel, a boutique 81-room property known for its rotating themed pop-up bar, sold in late June to Westdale Capital, a Dallas investment group, for $40 million — nearly $494,000 a room.
The Fairlane operated for four years before trading hands.
Meanwhile, other luxury line hotels in Nashville will be on 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 largest hotel sale price in Nashville’s history. The buyer: Xenia Hotels & Resorts, an Orlando-based hospitality investment firm.
One week ahead of the Conrad Nashville opening its doors, the Broadwest hotel sold last month to a Denver-based private equity group, Northwood Investors, for more than $119 million, according to land records.
“Projects like this draw investment into local neighborhoods and bring new economic stimulus and opportunities to local residents and businesses,” Bill Propst, chairman of Propst Companies, a developer of the Broadwest site, said in a press statement.
While hotels across the U.S. saw profits fall in May, rates exceeded a 2019 pre-pandemic comparable for a third consecutive month, according to a July report from STR, a Henderson, Tennessee-based group that provides global hospitality data.
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“Nashville is quickly becoming one of the top destinations in the country for leisure and corporate travel, along with 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 a debut to 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 stated it planned to invest $1 billion into the city over the next two years.
Another New York real estate company, AVR Realty Co., shattered 2019 records by paying $125 million for the Downtown Hilton Garden Inn. In August 2019, the Downtown Nashville Hampton Inn was purchased at $101.5 million — or $490,000 per room — by Nakash Holdings, an investment group run by the founders of Jordache Enterprises, a clothing company.
In the height of the pandemic, the historic,125-room Union Station Hotel sold to Nashville Yards developer Southwest Value Partners for about $56 million ($450,000 per room).
The city is expected to see two of its three 5-star hotels open their doors in the coming years. The Four Seasons is slated to open mid-2022 and the Ritz Carlton in 2025.
Arcelia Martin covers growth and development for the Tennessean, a part of The USA TODAY Network. Reach Arcelia at firstname.lastname@example.org. Follow her on Twitter @arcelitamartin.