Nashville became one of the strongest lodging markets in the United States given its designation as a top-tier travel destination and its diverse economy, inclusive of strong employment in the medical, manufacturing, music/entertainment, and tourism industries. Highlights during the last decade included the opening of the Music City Center; corporate expansions and relocations in the area, including firms such as Nissan North America and HCA; and the increased international reputation of Nashville as a premier tourism destination. Over the last two decades, Nashville has evolved from a market that would typically achieve occupancies in the mid-60s into one that could surpass 70.0% on a steady, year-over-year basis. In 2023, occupancy reached nearly 70.0% but remained below the peak occupancy period of 2014 through 2019. ADR, on the other hand, reached nearly $180 in 2023, and RevPAR reached an all-time high. The significant lodging supply growth in the greater market influenced this trend, as many submarkets were under-supplied prior to 2020. The outlook for 2024 is favorable. Demand levels have remained strong, and new supply in the pipeline has waned given the higher barriers to entry. Nashville's diverse economy and robust tourism industry, as well as corporate relocations to the area, should support long-term growth.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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| ADR Change
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| Market Demand Change
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| Hotel Occupancy Increase/Decrease
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| RevPAR Change
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0.0%
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
Legend
| Significant Value Increase:
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Greater than +10%
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| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Nashville RevPAR
| Year |
RevPAR |
| 2008 |
$57.53
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| 2009 |
$49.29
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| 2010 |
$50.45
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| 2011 |
$57.87
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| 2012 |
$63.09
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| 2013 |
$70.73
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| 2014 |
$84.16
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| 2015 |
$93.06
|
| 2016 |
$100.52
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| 2017 |
$105.87
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| 2018 |
$104.60
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| 2019 |
$105.59
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| 2020 |
$107.67
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| 2021 |
$
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| 2022 |
$
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| 2023 |
$
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| 2024 (f) |
$
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| 2025 (f) |
$
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| 2026 (f) |
$
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