NASHVILLE, Tenn. (WKRN) – There are nearly 12,450 new hotel rooms in the works for the Nashville area.
As CEO of the Tennessee Hospitality and Tourism Association, it is part of Greg Adkins job to help keep track of them.
“We are seeing huge growth in the hospitality industry, which includes hotels, restaurants and attractions. It is probably one of the top 10 areas in the Nation seeing this much growth,” said Adkins.
According to STR, a data and analytics specialist based in Hendersonville, of the more than 12,450 hotel rooms, 3,927 are in the planning phase, 2,402 are in the final planning phase, 3,573 are under construction and 2,546 are under discussion.
“They range from a full service property to a limited service,” explained Adkins. “You have a really good base, I call it the perfect recipe for hotels.”
The Westin in downtown Nashville opened about five months ago. Its rooms range in price from $200 to $400 per night. Since opening, the hotel has stayed at 80 percent occupancy.
“I think the upscale hotel is always going to have a high demand for the rate. The reason is there is just such a difference in experience in what you get at the more focused service brands then what you get at a hotel like ours,” said Westin Hotel’s General Manager, Lukus Kindlesparker.
In the Gulch, the area’s newest lifestyle hotel, called the Thompson Nashville, is also enjoying a lucrative few months. It opened in October and rooms range in price from $300 to $5,000 per night. The hotel stays at about 90 percent occupied.
“We are in one of our penthouses and we are looking at a custom marble table that we had designed just for us. Our intent from a lifestyle perspective is really to make it feel residential,” explained Brett Orlando, the general manager at the Thompson Nashville.
The room he showed News 2 runs about $2,500 per night.
“Our rates speak to the level of service we provide and what our product looks like. Sometimes you get lucky, because you live in an environment like Nashville where life is great for every hotel. We think it is great too, but we never want to gouge our guests. We want to provide an experience that goes along with our rate,” said Orlando.
Industry experts told News 2 the high hotel room prices will level off at some point. They expect prices to fall within the next few years as new hotel rooms are completed.
“We are a free market economy, so supply and demand is a big thing. Probably what you will see is either a slowing of construction eventually, it can’t keep record pace,” said Adkins.
News 2 checked around to find some of the highest hotel prices in the area. We found a hotel penthouse suite listed for $10,000 per night. It is currently booked for three days in May.