NASHVILLE, TENN. — Carey Watermark Investors Inc. (CWI) has acquired Hutton Hotel, a four-star luxury hotel in downtown Nashville, for $73.6 million, or roughly $300,000 a key.
Before the sale of Hutton Hotel, the biggest sale price per key in downtown Nashville was $219,933. Apple REIT Nine Inc. paid that price in 2010 for the 194-unit Hilton Garden Inn at 1713 Broadway, according to New York-based Real Capital Analytics.
Beyond the purchase price, CWI plans to spend $3.7 million on capital improvements to the 247-room hotel and other acquisition-related costs. Amerimar Enterprises Inc. will continue to manage the hotel.
Hutton Hotel is located at 1808 W. End Ave. in the West End neighborhood of Nashville and is close to Music Row, Vanderbilt University, the Grand Ole Opry, Country Music Hall of Fame and the new 1.2 million-square-foot Music City Convention Center.
Michael Medzigian, CEO of CWI, says that the non-traded REIT considers the luxury hotel, which is in a growing and diverse market, an attractive addition to its portfolio that’s consistent with generating strong cash flow and future value for its investors. “Given the opening of the new convention center and other existing attractions, the Nashville hotel market is expected to continue its strong positive trend.”
Amenities at the hotel include the 1808 Bar & Grille, more than 13,600 square feet of meeting space, a gift shop and concierge services. In addition, the hotel offers eco-friendly features and pet friendly programs.
Conde Nast Traveler has included the AAA Four-Diamond property on its “Hot List” since the hotel opened in 2009. In 2013, the hotel received a Forbes Four-Star Award and is included in the 2013 edition of Forbes Travel Guide.
Carey Watermark, which focuses primarily on the lodging industry, is a partnership of New York-based W.P. Carey Inc. and Illinois-based Watermark Capital Partners.
— Rachel Goff