JLL secures $300M refinancing for Omni Nashville Hotel

Rhea-AI Summary

JLL Capital Markets has arranged a $300 million refinancing for the Omni Nashville Hotel, an 800-key luxury property in downtown Nashville. The deal involves a fixed-rate, seven-year loan secured through a U.S.-based insurance company and AllianceBernstein Commercial Real Estate Debt for borrower TRT Holdings.

The 21-story hotel, opened in 2013, features over 80,000 square feet of meeting space, including Nashville's largest hotel ballroom. The LEED Silver certified property includes multiple dining options, a Mokara spa, rooftop pool, and is integrated with the Country Music Hall of Fame and Museum. Located opposite the Music City Center convention facility, the hotel benefits from Nashville's tourism sector, which attracts over 14 million annual visitors.

Positive

• Secured substantial $300M refinancing with favorable seven-year fixed rate terms
• Property is a market leader in RevPAR performance
• Strategic location next to 2.1M sq ft convention center
• Benefits from strong tourism market with 14M annual visitors

Negative

• None.

Insights

Financial Analyst

The $300 million refinancing of the Omni Nashville Hotel represents a significant capital markets transaction that demonstrates continued institutional investor confidence in premium hospitality assets. The seven-year fixed-rate structure provides TRT Holdings with stable, long-term financing during a period of elevated interest rates, while the involvement of major insurance companies as lenders indicates strong underlying asset quality.

Nashville's hospitality market fundamentals are exceptionally robust, with the property's strategic location near the 2.1 million-square-foot Music City Center providing a sustainable competitive advantage. The hotel's leading RevPAR performance and integration with the Country Music Hall of Fame creates a unique value proposition that helps justify the substantial refinancing amount.

For JLL (market cap: $11.6 billion), this transaction reinforces their position in the hospitality capital markets space and contributes to their fee-based revenue stream. The deal's complexity and size showcase JLL's ability to execute major institutional transactions, particularly valuable given current market conditions where large hospitality deals face increased scrutiny.

Real Estate Market Analyst

Nashville's hospitality sector is experiencing a remarkable growth trajectory, with 14 million annual visitors creating sustained demand for premium lodging assets. The Omni Nashville's positioning as a convention center hotel with the city's largest hotel ballroom makes it a critical piece of infrastructure for Nashville's meetings and events business.

The property's LEED Silver certification and comprehensive amenity package, including 80,000 square feet of meeting space, align with evolving corporate client expectations. The successful refinancing indicates that despite broader market uncertainties, well-located, institutional-quality hospitality assets in strong growth markets can still attract favorable financing terms.

This transaction validates Nashville's status as a top-tier hospitality market, where strong fundamentals are driving continued institutional investment. The involvement of established lenders like AllianceBernstein and Equitable Financial Life Insurance Company suggests the debt markets remain selective but open for premium assets in leading markets.

Financing arranged for 800-key convention center hotel in one of the top-performing lodging markets in the country

DALLAS, Jan. 9, 2025 /PRNewswire/ -- JLL's Capital Markets group announced today it has arranged a $300 million refinancing for the Omni Nashville Hotel, an 800-key luxury hotel in downtown Nashville.

JLL worked on behalf of the borrower, TRT Holdings, Inc., to secure a fixed-rate, seven-year loan through a U.S.-based insurance company and AllianceBernstein Commercial Real Estate Debt, in its capacity as advisor to Equitable Financial Life Insurance Company.

The 21-story Omni Nashville Hotel opened in 2013 and features over 80,000 square feet of meeting space, including Nashville's largest hotel ballroom at 23,800 square feet. The LEED Silver certified property offers multiple dining options like Bob's Steak & Chop House, Kitchen Notes and Barlines, as well as a 5,500-square-foot Mokara spa, rooftop pool and state-of-the-art fitness center.

Located at 250 Rep. John Lewis Way South, the hotel is seamlessly integrated with the Country Music Hall of Fame and Museum and sits across from the 2.1 million-square-foot Music City Center convention facility. The property benefits from Nashville's booming tourism and corporate sectors, with over 14 million annual visitors and major employers expanding in the market.

The JLL Debt Advisory team was led by Hotels & Hospitality Group Americas CEO Kevin Davis, Senior Managing Directors Whit Johnson and Jim Curtin, Managing Director Mike Huth, Director Shalin Patel, Associate Luke Rogers and Analyst Nick Warta.

"The Omni Nashville exemplifies the strength of Nashville's hospitality market, consistently ranking at the top of its competitive set for RevPAR," said Davis. "With its irreplaceable location next to Music City Center and high-quality amenities, the property is well-positioned to continue its market-leading performance as Nashville experiences tremendous growth in both leisure and business travel demand."

JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL's newsroom. 

About TRT Holdings, Inc.
TRT Holdings, Inc, the parent company of Omni Hotels & Resorts, is a privately owned, diversified holding company based in Dallas, Texas with primary interests in hospitality, real estate, and private and public investments. TRT Holdings was founded in 1989 and is owned and controlled by Robert Rowling, Chairman, and Blake Rowling, President.

About AllianceBernstein (AB)
AllianceBernstein L.P., parent company of AllianceBernstein Limited, is a leading investment-management firm with $793 billion in client assets under management, as of October 31, 2024. AB offers high-quality research and diversified investment services to institutional, high-net-worth and retail investors, in major world markets.

AB's investment capabilities span diverse asset classes, investment styles and geographic markets. They include: Luxembourg-domiciled global, regional and sector-specific equity funds; multi-asset and alternative funds; and fixed-income strategies that encompass the entire risk/reward spectrum.

About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500^® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Contact: Grace Lewis, JLL PR
Phone: +1 903 520 3478  
Email: grace.lewis@jll.com

 

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SOURCE JLL

FAQ

What is the value of JLL's recent refinancing deal for Omni Nashville Hotel?

JLL arranged a $300 million refinancing deal for the Omni Nashville Hotel with a fixed-rate, seven-year loan term.

How many rooms does the Omni Nashville Hotel have?

The Omni Nashville Hotel features 800 keys (rooms).

What are the main amenities of the Omni Nashville Hotel financed through JLL?

The hotel features 80,000 square feet of meeting space, Nashville's largest hotel ballroom (23,800 sq ft), multiple restaurants, a 5,500-square-foot Mokara spa, rooftop pool, and fitness center.

Who are the lenders involved in JLL's Omni Nashville Hotel refinancing?

The refinancing was secured through a U.S.-based insurance company and AllianceBernstein Commercial Real Estate Debt, acting as advisor to Equitable Financial Life Insurance Company.

What is the annual visitor count in Nashville supporting the Omni Hotel refinanced by JLL?

Nashville attracts over 14 million annual visitors, supporting the hotel's operations and market performance.