Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 120-room Red Roof PLUS+ Nashville Airport (“Hotel” or “Property”), situated at 510 Claridge Dr, Nashville, TN 37214.
The Hotel is conveniently located directly off the intersection of Interstate 40 and Tennessee State Route 255 (Donelson Pike), providing easy access to Nashville International Airport, which is approximately two miles away, Gaylord Opryland Resort and Convention Center, Opry Mills and the Grand Ole Opry, which are six miles away, and downtown Nashville, which is eight miles from the Property and is easily accessible via I-40.
Long known as “Music City” because it has been the second biggest music production center (behind New York City) since the 1960s, Nashville’s economy is exploding. Nashville’s expansion has been largely driven by job growth in construction, professional and business services while also becoming a major hub for the logistics and transportation industries. Additionally, over the past several years Nashville has seen a significant increase in the Millennial and Gen Z population, which in turn has driven Nashville’s tech, healthcare and education industries, all of which are expected to continue expanding.
Investment Highlights
Attractive Location at Nashville International Airport
The Red Roof PLUS+ Nashville Airport is strategically located directly off the intersection of Interstate 40 and Tennessee State Route 255 (Donelson Pike), providing easy access to Nashville International Airport, which is under two miles away.
The Nashville International Airport has served over 23 million passengers in Fiscal Year 2024, representing an impressive 8.4% year-over year increase. Additionally, the airport submarket is the first submarket to attract overflow business from major events held downtown, and has the added benefit of significant Class “A” office parks surrounding the airport and providing further demand for the Hotel.
Proximate to Nashville’s Primary Demand Generators
The Hotel is also proximate to Nashville’s strong corporate presence as well as the city’s famous attractions and leisure demand generators. Located approximately eight miles from the Hotel, downtown Nashville features a variety of popular attractions including the Country Music Hall of Fame and Music City Walk of Fame as well as several award-winning dining establishments, bars, boutique shops, and several other attractions. The Hotel is located near several of Nashville’s most popular demand generators including the world-famous Grand Ole Opry, Opry Mills, Ryman Auditorium, Nissan Stadium, and Bridgestone Arena. Additionally, there are several colleges in the area including Vanderbilt University, which is roughly nine miles from the Property.
The Hotel is also proximate to the Century City office park, which comprises the majority of the Class “A” office space in the Airport North submarket. Major multinational companies including Bridgestone International (U.S. headquarters) and Willis Corporation maintain corporate headquarters in this office park. Other major companies with a presence in the immediate area include UPS, TVA, Dell Computers, and AT&T.
Offered Well Below Replacement Cost
The opportunity to acquire this asset well below replacement cost allows an investor to benefit substantially from a combination of location in a growing economy and upside opportunity. The national average cost of building a hotel has increased significantly in the past few years. Given the size and condition of this Hotel, as well as the increased cost of labor and supplies in today’s market, we can reasonably assume that the construction of this Property would be significantly more than the target selling price of this asset.
Offered Unencumbered of Management
The Red Roof PLUS+ Nashville Airport is being offered unencumbered by a management agreement. An investor possesses the opportunity to bring in a new management company or to act as an owner/operator and seek to revamp the operational strategy of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.
Fee Simple Interest
The Property will be offered as fee simple.
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