$47.5 million: that’s the price at which the Sheraton Nashville Downtown Hotel was bought by JRK Hotel Group, part of the California based JRK Property Holding Inc., recently.
Memphis-based DHG Nashville LLC previously bought the property for $24.5 million back in 2003. It was then appraised at $37.5 million, before eventually being sold to the JRK Hotel group. Going at $100,000 per room, it is a reflection of the positive real estate environment in Nashville and growing interest from outsiders in a city that is increasingly seen as a growing tourist destination, says hotelier and real estate investor Mark Bloom.
On this particular property sale, Bloom commented that the selling price is “very aggressive”, especially given the fact that the Sheraton property was built over 35 years ago and isn’t considered among the elite ones in Nashville.
JRK Hotel Group President John Flannigan says, “The 472-room hotel will undergo significant and extravagant renovations. However, we’ll be able to spill the specifics of the plan only after we’ve put the entire roadmap in place. We can confirm that the hotel will remain operational throughout the course of the renovation and the Sheraton flag will be retained”.
Flannigan adds, “The economic landscape looks very promising for downtown Nashville. Construction of a new convention center along with major investments in downtown Nashville was the key trigger for this move. In terms of the room count, The Sheraton now is the largest hotel in our portfolio. We also own a Holiday Inn Express Hotel in Nashville which has been doing very good business for us”.
Tamara Dickson, vice president of economic development for the Nashville Downtown Partnership proudly declares, “Since 2000, over $3 billion worth of investments have flooded into Nashville, both in the public and private spaces. Over $1 billion of this is attributed to the Music Convention Center and Omni Hotel”.
The latest purchase goes on to cement the optimistic outlook of the real estate space in Nashville.
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