Hotels see slight room rate dip year-over-year during CMA Fest | Tourism

Jan Freitag, CoStar national director for hospitality market analytics, said part of the rate decline “may have been a function of new competitors in the market since room supply increased 1.7 percent year-over-year in the greater Nashville market.”

Freitag, who also serves as senior vice president of lodging insights for Hendersonville-based STR (CoStar is the parent of STR), said newish hotels offered festival goers “more options,” than in the past and “often at a lower price point than in the downtown core.”

Occupancy for the broader Nashville hotel market (which is not limited to Davidson County) averaged about 81 percent for the Thursday through Saturday CMA Festival weekend, according to CoStar figures. Of the nation’s top 25 markets, the occupancy rate for the same period was about 76 percent.

Similarly, the average daily rate (ADR) for the broader Nashville hotel market was about $230 for the CMA Fest weekend. In contrast, the ADR for nation’s top 25 markets and during the same period was $190.

CoStar reports Nashville’s high-end hotels ordered an ADR, for the week of June 2 to June 9, of almost $299 for groups and $331 for transient visitors.

Some of Nashville’s luxury hotels continue to see ADRs of $400 and more.