NASHVILLE, TN—The Sheraton Downtown Hotel has a new owner. JRK Property Holdings acquired the 472-room hotel from an undisclosed buyer. Financial terms of the deal were not revealed.
This is JRK’s second hotel investment in Nashville. JRK currently owns the 287-room Holiday Inn Express in Downtown Nashville. Bobby Lee, president of JRK’s investment division, tells GlobeSt.com the firm targeted the Sheraton Downtown Hotel for several reasons.
“We believe that there is opportunity to drive immediate gains in RevPAR index against the compset through revenue management,” Lee says. “We are also able to drive further gains through a capital renovation. Because we already own the holiday inn express in Nashville we see significant areas to leverage scale both with respect to group sales and operating expenses.”
JRK plans to invest in a significant capital renovation in order to reposition the hotel as a rate leader in the downtown Nashville market. The hotel is located in the heart of Music City just blocks from the historic 2nd Avenue Entertainment District, Printer’s Alley, the Country Music Hall of Fame, LP Field, and the soon-to-be open Music City Convention Center.
“Nashville is one of the stronger markets nationally right now,” Lee explains. “2012 will post double digit top line growth. 2013 should be a good year as well given opening of 1.2 million square foot music city convention center in April. There are buyers for Nashville hotel properties but we are not seeing REITs active here now. As a result yields are very attractive.”
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