The neon signs on Nashville's Lower Broadway. (georgeclerk/Getty images)
City Profile: Nashville’s Hospitality Scene is Music to Investors’ Ears Article by Nellie Day May 14, 2024, HOSPITALITY INVESTOR
Nashville is on the move, and that move is taking Music City higher and higher on the list of attractive targets for hotel investors. “For sophisticated investors, Nashville has been on their radar for 15 or so years,” explains Jan Freitag, national director for hospitality market analytics at CoStar. “The cost of financing is high everywhere in the U.S., so the question is, can you get the required returns despite this high cost of capital? In this town, the investor sentiment is clearly ‘yes.’” There are a couple factors currently driving visitor demand which are then, in turn, driving investor demand. Nashville International Airport (BNA) broke its passenger record at the end of its last fiscal year (May 2023), welcoming nearly 22 million people. This volume was up 18.7 percent from the previous fiscal year, which had also broken its passenger record.
A $1.5 billion airport expansion that included the addition of six international gates and eight satellite gates was recently completed, while another $1.5 billion expansion is expected to wrap up in 2028. A new stadium for the NFL’s Tennessee Titans will also welcome fans in 2027. Nissan Stadium is expected to bring its own increased attendance, especially due to its dome shape, which will allow for year-round activation. On the convention front, Nashville was ranked the No. 2 convention destination by Cvent.
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