$950,000 for a Key, 346 Key W Nashville Hotel sell for $328.7 million

 Friday, March 4, 2022

              

 Xenia Hotels & Resorts Inc. has agreed to purchase 346 important West Nashville Hotels for a sum of $328.7 million or $950,000 for each key hotel.Nashville CBD/West End has been a very highly performing sector in the lodging market for the last decade. The RevPAR CAGR of this region is 5.4% between 1987-2019 and 8.7% between 2009-2019. There is also an increased demand after the initial shock of the COVID pandemic receded.Opening in October 2021, the W Nashville Hotel is made of 14 stories with world class amenities like :

  1. 2 destination restaurants by Chef Andrew Carmellini and 4 other bars and restaurants including rooftop and pool bars.
  2. 6 street level entrances to maximize accessibility and revenue generation across its multiple venues.
  3. 200 parking spaces and  60 suites covering 17% of the Keys.
  4. 18,000 square feet of differentiated indoor meeting and pre-function space with state-of-the-art technology to attract the most discerning groups
  5. 26,000 square feet of finished outdoor space, with a rooftop with 360-degree views, a 10,000 square foot pool deck, and terraces suitable for meetings, food and beverage and event spaces.

Marcel Verbaas the Chief Executive Officer and Xenia’s Chairman is thrilled to have reached an agreement to purchase W Nashville which is located in the heart of the city in the Gulch neighborhood. He believes that this new addition to their portfolio of their uniquely positioned premier hotels. Mr. Verbaas is also excited regarding the earning potential of the hotel. And the West Nashville hotel is suited to attract crowds from varied backgrounds like both leisure and corporate demands.

Nashville possesses an extremely dynamic growth market in the USA and more companies are increasing their market presence in the country as the economy is slowly reviving. Located in the LEED -certified Gulch neighborhood, the W Nashville is close to the booming corporate fields like healthcare, the music recording industry, technology, finance, education, and consulting firms.

Mr. Verbaas said that they are interested in deepening their ties with the Marriott group and that this is their 14th Marriott affiliated property. He also said that the W Nashville was their first W property. He hopes that the W Nashville to generate between $25 million and $30 million of Hotel EBITDA upon stabilization. Xenia Hotels and Resorts expects to complete their transaction at the end of the first quarter and fund their acquisition with available cash.

« Back to Page

Related Posts

PARTNERS

SUBSCRIBE