Downtown Nashville's grand Union Station Hotel is slated to be sold for $56 million.
Pebblebrook Hotel Trust, a Bethesda, Maryland-based publicly traded real estate investment trust that owns the historic building, said Wednesday it has a contract in place and is targeting a third-quarter closing on the transaction. The prospective buyer is not identified in a release.
Pebblebrook Hotel Trust paid $52.3 million for the historic 125-room hotel building in December 2014. Florida-based Turnberry Associates and Corner Partnership of Nashville were the sellers.
At the time, the acquisition represented about $418,400 per room, seemingly a record price for an area hotel sale. It was Pebblebrook's first local property, with the REIT having previously focused its acquisitions on hotels in cities considerably larger than Nashville.
A sale for $56 million will be the equivalent of $448,000 per room.
Located at 1001 Broadway in a former railroad terminal that opened in 1900, Union Station Hotel ranks among Nashville’s most upscale hospitality quarters. The hotel opened in 1986 and became a member of Historic Hotels of America in 2015. It is part of Marriott's Autograph Collection.
According to Metro records, the Metro Development and Housing Agency owns the land on which the hotel building sits.
Pebblebrook Hotel Trust owns 54 hotels with a collective 13,400 guest rooms. The properties are located in 15 urban and resort markets with a focus on the West Coast cities.