Host Hotels & Resorts, a lodging real estate investment trust, has acquired the two-hotel complex in Nashville, US, for nearly $530m in cash.
This complex houses the 215-room 1 Hotel Nashville and the 506-room Embassy Suites (together referred to as property) by Hilton Nashville Downtown.
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The Maryland-based investment trust said that the deal consideration marks 12.6 times the earnings before interest, taxes, depreciation and amortisation (EBITDA) multiple, or a capitalisation rate of around 7.4% on the property’s projected results in 2024.
With anticipated combined revenue per available room (RevPAR) of $275, total RevPAR of $435, and EBITDA per key of $58,550, the two acquired hotels are poised to be among Host Hotels’ top 25 properties.
Host Hotels & Resorts president and CEO James F. Risoleo said: “We are excited to add the 1 Hotel Nashville and Embassy Suites by Hilton Nashville Downtown to our portfolio and establish a presence in one of the country’s most exciting cities.
“The newly built property has a prime location in Nashville, a top performing market, which had an impressive RevPAR CAGR of 7.7% from 2000 to 2023, even while absorbing new supply.”
Opened in 2022, the newly constructed LEED Silver-certified property has a total of 721 oversized rooms, with an average size of 500ft² each, with a suite mix of 75%
It has seven food and beverage outlets, including Harriet’s Rooftop.
Other amenities at the property include a Bamford Wellness spa with six treatment rooms, two fitness centres, a yoga studio, and meeting space.
The meeting facilities encompass 33,000ft², featuring a 9,400ft² ballroom and 9,300ft² of pre-function space.
This property is located directly opposite the Music City Convention Centre and within a ten-minute drive of several attractions.
