Ashford Secures 30-Year Lease for Existing Convention Center
By Eliza Theiss, Associate Editor
Self-administrated real estate investment trust Ashford Hospitality Trust, Inc. announced that it has entered, along with its joint venture partner, a series of agreements with the City of Nashville and Davidson County regarding its ownership of the Renaissance Nashville Hotel and the existing Nashville Convention Center.
According to a press statement, Ashford Hospitality has secured a 30-year lease agreement for 80,000 square feet of meeting and pre-function space at the existing Nashville Convention Center. The existing Convention Center is adjacent to the 673-key Renaissance Nashville Hotel. Ashford has a 71.74 percent ownership interest in the hotel, which with the new lease agreement will be able to offer upwards of 110,000 square feet of self-contained meeting and pre-function space. Before the freshly signed agreement the hotel had access to the Convention Center’s space on an “as available” basis and with additional payment.
Ashford and its joint venture partner also changed their leasehold interest in the hotel, set to expire in 2087, to fee simple ownership, and they extended the lease on some adjacent facilities to 2112. The Renaissance Nashville Hotel is currently undergoing a $20 million value-add renovation. It will also engage in a value-add renovation of the newly leased asset. The latter will be funded from existing capital reserves.
Located at 611 Commerce Street, the existing convention center’s anchor hotel offers amenities such as staffed business center, a 24-hour health club, indoor pool, whirlpool, spa/salon, full service restaurant, two lounges and circa 110,000 square feet of meeting and pre-function space, including two grand ballrooms. The hotel was completed in 1987 and is an AAA 4 Diamond Award winning property.
Image courtesy of Jice99 via Wikimedia Commons
Tags: leasing, Maintenance, Policy, property management