Recently, CEO of Pinnacle Hotels, Ray Dayal spent a whopping $5.25 million to realize land development plans near Nashville’s Music City Center convention hall.
At the other corner of 5th Ave. South and Korean Veterans Blvd., The Matthews Co. holds land under contract to one hotel development firm to build what could probably be downtown Nashville’s 2nd dual-branded hotel.
Mitch Patel, a developer from Platinum Hospitality Management Corporation, purchased a piece of land worth $3.75 million for his plans to build a limited-service type hotel.
An Arizona-based hotel group also purchased a separate site to construct a hotel. The developer, Tony Giarratana, has revealed plans to build a 4-star hotel within the community.
Meanwhile, Chartwell Hospitality, a Franklin-based company is set to close a multi-million dollar deal for its Hilton Garden Inn project in the city.
This surge in land deals reflect the heightened interests of hotel developers and companies to take advantage of the expected boom and demands to build new hotels within Nashville. This is to coincide with the estimated 2013 opening of the newest convention center, just south of the Broadway area.
However, the success of these development projects still depends on their debut timing and the services that they can offer; if they are either full-service or limited-service hotels.
According to Chuck Pinkowski, the owner of the hospitality consulting company Pinkowski and Co, expectations of the rise in the number of occupancy and the rates of the rooms are factors that can boost the developers’ confidence to continue with the development projects in the downtown Nashville area. However Pinkowski stated that there will always be competition and success still depends on a lot of factors.
Between the Omni Convention Center and the Hyatt Place, construction of 1,025 more beds is on its way. Pinkowski indicated that the construction is doing okay however he noted that adding 2,000 beds or more could lead to a decline in the occupancy rate.
Nashville Convention and Visitor’s Bureau President, Butch Spyridon stated that a lot of projects have been turned down by the Music City Center. He indicated that the place needs larger hotels offering full service rather than properties that can only provide limited service.
Meanwhile, Chartwell-Hospitality President, Rob Schaedle is expecting a 2014 fall opening of the 200-bed capacity Hilton Garden Inn. Schaedle indicated that being in the market for quite some time now has made them resilient even during the recession.
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