A buyer from Ohio paid a premium, near-record price for one of the few hotels open in SoBro, the part of downtown that’s been ground zero for Nashville’s real estate boom.
Rockbridge Capital LLC, of Columbus, paid $80.3 million for the Hilton Garden Inn on Korean Veterans Boulevard, according to newly filed public records.
The deal underscores two of the dominant themes of Nashville’s epic surge in property values and rush of construction. First is the fact that newcomer, out-of-state money continues to juice the boom — as evidenced by Rockbridge, which also is turning the building at 200 Fourth Ave. N. into a 226-room boutique hotel. Second is the fact that Nashville remains a fantasyland for hotel investors, with demand from record tourist visits, increasing business travel and convention bookings far outstripping the city’s exiting supply of hotel rooms. That imbalance means Nashville’s average occupancy rates remain among the highest in the nation, enabling hotel owners to push their rates to stunning highs.
The Hilton Garden Inn, which formally opened one year ago, contains 214 rooms. That means Rockbridge paid an average of $375,051 per room — the third-largest hotel deal in Nashville’s history, according to our data.
The purchase price is just $79 per room less than what The LCP Group, of New York, paid four months ago for the Hampton Inn & Suites located across the street from the Hilton Garden Inn. (That hotel has 154 rooms and has received Metro approval to add another 50 rooms).
The record-holder is the luxury boutique Union Station hotel, which sold at the end of 2014 for a price of $418,400 per room (a total of $52.3 million). Just in this calendar year, Nashville has now witnessed the second-, third- and fifth-biggest hotel deals ever.
Rockbridge bought the Hilton Garden Inn from its owner and developer, Franklin-based Chartwell Hospitality. The hotel may one day face a lot of competition. Our Crane Watch map shows at least 4,085 hotel rooms proposed or under construction in SoBro alone, a record pipeline.
But until 2018, the Hilton Garden Inn will likely remain the only hotel open south of Korean Veterans Boulevard. One block over, Atlanta developer North Point Hospitality Group recently broke ground on a 470-room hotel that will combine three Marriott brands in the same 21-story building.
BBVA Compass bank, of Alabama, provided Rockbridge a loan to cement the purchase, according to public records.
Nashville Business Journal