Host deals for 721-room Nashville complex: report

NASHVILLE, Tennessee - Host Hotels & Resorts is acquiring the 1 Hotel Nashville and the adjacent Embassy Suites from a group of owners that includes a Starwood Capital Group affiliate for $530 million.

The ownership group, also including Crescent Real Estate and High Street Real Estate Partners, started developing the developing 721 hotel rooms in 2019 (506 rooms for the Embassy Suites and 215 rooms for the 1 hotel) on a 1.3-acre parcel of land directly across from Nashville's Music City Center, a $625 million convention center. The complex opened in 2022.

Bethesda, Maryland-based Host Hotels & Resorts ended 2023 with a hefty $2.9 billion of available cash with CEO Jim Risoleo and his team focused on acquiring large hotels and resorts with diverse demand driver. At the end of 2023, Host owned 77 upscale hotels containing approximately 42,000 rooms in The U.S., Canada and Brazil.

Among its more recent acquisitions in late 2022 was the Four Seasons Resort and Residences Jackson Hole, a 125-room luxury resort in Jackson Hole, Wyoming, for approximately $315 million in cash. At the time, Host said it expected the resort to be one of its top three assets based on estimated full year 2022 results, with RevPAR of $855, TRevPAR of $1,430, and EBITDA per key2 of $185,000, further improving the quality of the company’s portfolio.

In January 2024, Starwood Capital Group acquired a portfolio of 10 hotels from Edwardian Group in London for a reported £800 million via an off-market transaction. The portfolio comprises 10 hotels with 2,053 rooms. Edwardian Group will continue to own and operate The Londoner and its two Radisson Collection hotels, The May Fair and The Edwardian Manchester.

Alongside the acquisition, Starwood Capital and Edwardian Group intend to collaborate on future opportunities together. As part of this relationship, Edwardian Group will continue to operate the portfolio on a transitional basis while Starwood Capital plans its future investment into the hotels.