NASHVILLE, Tenn. (WKRN) — Twelfth Avenue Realty just announced it has completed the sale of the “W Nashville” to Xenia Hotels & Resorts, Inc. for a sales price of $328.7 million or $950,000 per key — the largest per-room sales record for any hotel in the city’s history.
Those involved with the sale say it’s a milestone that signals an important moment for Nashville’s real estate and hospitality market as the city’s growth continues to accelerate.
News 2 first covered the 14-story hotel in October of 2021 at its grand opening.
W Nashville is the largest hotel in Nashville, with more than 280 rooms and 60 suites. The building also has meeting rooms, a pool, a gym facility and other amenities.
“From a market standpoint, that puts us in the big leagues with some of the major key cities in the U.S having almost a million dollar a key sale,” said Dave Tessier, President of Hospitality Gaming Advisors. “I think it shows that there is a market for something very, very special in this town.”
It’s why several premiere hotel brands have recently expanded to Music City, like the Four Seasons, Thompson, Conrad and others.
“I think if a lot of the new hotels come in and they really honor the market and local market and they’re contributing to the local market, that’s probably what you want to look for, right, is people that will embrace the local market and make it feel great for locals and not just build rooms,” Tessier said.
Nashville’s central business district and West End has been one of the strongest performing lodging markets over the past few decades, and demand has rebounded strongly after the initial impact of the COVID-19 pandemic.
“It’s coming back. I’ll tell ya, when the group business market comes back and business transient comes back this market is going to be stronger than ever,” Tessier said. “This market is going to be so strong for such a long time.”
When it comes to management and restaurants inside of the property, Tessier said the sale will not have an impact.