Wexford Buys DoubleTree Near Nashville Airport
HREC arranged the sale of the 138-key all-suites hotel, which provides quick access to both downtown and Opryland. Hospitality Ventures Management Group was the seller.
DoubleTree Suites by Hilton Hotel Nashville Airport. Image via Google Maps
An affiliate of Wexford Lodging Advisors has purchased the 138-key, all-suites DoubleTree Suites by Hilton Hotel Nashville Airport, with HREC Investment Advisors representing the seller. According to public records, Hospitality Ventures Management Group sold the property for about $13.4 million.
Located at 2424 Atrium Way, the property is about 2 miles north of Nashville International Airport, which is undergoing a multibillion-dollar expansion. The hotel’s location, off Briley Parkway and near the Interstate 40 interchange, is only 10 minutes east of downtown Nashville and 10 minutes south of Opryland.
The HREC marketing and negotiations team included Managing Director Monty Levy of the Atlanta office, as well as Principal Patrick Culligan and Maryna Zozulina, associate & affiliate broker, both from the firm’s Memphis office.
Levy noted that “an added benefit to the seller in this transaction is that they were able to retain management of this hotel.”
Supply, demand surging
The city recorded 15.2 million visitors in 2018, a 4.8 percent increase over the previous year, according to the Nashville Convention & Visitors Corp. The hotel development pipeline is aggressive, with 28 properties totaling 4,832 rooms slated for completion in 2019 and 2020, per the same source. Just at the end of last month, a Four Seasons project and a Hyatt development landed a total of nearly $430 million in construction financing.
“While new supply is anticipated to weigh on operating performance in the near term,” according to a report from HVS, as of year-end 2018 the Nashville market had posted less than a 2 percent decline from its 2016 occupancy peak, despite a supply increase of nearly 8 percent, or 3,000 rooms.
“While strong overall demand growth is expected to continue … the outlook would best be described as positive yet cautious because of the blistering pace of supply growth on the horizon,” HVS concluded.
A recent Yardi Matrix multifamily report on Nashville notes a parallel boom in the apartment sector, driven in part by Amazon’s new Nashville Yards operations hub, which is expected to generate 5,000 jobs over the next seven years.
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