June 24, 2022
The price of Broadwest’s recent Conrad hotel sale came in at $170.5 million, one of the largest transactions ever recorded for a Nashville hotel.
The sum, which was recorded on sale documents viewed by the Business Journal — equals around $728,632 per room — a notable price, but short of Nashville’s per-room record of $950,000, which was garnered by the W hotel’s March sale. The Davidson County Register of Deeds recorded the Conrad sale at $119 million; the reason for the discrepancy is unclear.
“We reviewed the deed we recorded for the Conrad hotel at 1620 West End, and we confirmed that it shows consideration in the amount of $119 million,” Chief Deputy Register of Deeds Jack Brown said in a statement.
The Conrad Nashville’s transaction marks the second-highest overall sales price ever recorded for a hotel in Music City, according to data from STR. The current overall record-holder is also the W Nashville, which fetched nearly $329 million just months after its October 2021 opening.
This year is expected to be robust for hotel investments nationally. More than $12.5 billion worth of hotel properties sold across the nation in 2022’s first quarter — the best opening quarter since 2016, according to data from CoStar.
After the W Nashville, the highest sales prices ever recorded for Music City hotels are the Conrad’s recent $170.5 million, $169.7 million for the Sheraton Grand Nashville Downtown and $125 million for the downtown Hilton Garden Inn.
The Conrad’s sale was announced on Monday, but a purchase price was not disclosed at the time. The property’s new owner is Northwood Investors LLC, a global private equity firm based in Denver. The transaction was financed with a $114.05 million loan from RBC Real Estate Capital Corp., according to a Register of Deeds document.
The hotel, one slice of Midtown’s two-tower Broadwest development, is scheduled to open June 29.
The luxury hospitality project was a joint effort between Broadwest’s lead developer, Propst Development, and Chartwell Hospitality. It will be the last component of the larger mixed-use project to open; Broadwest has already moved in office tenants and sold out its luxury condominiums (which sit in the same building as the Conrad).