Nashville’s hospitality market showed moderate softness in Q3 2025. Occupancy fell 2.8%, ADR declined 1.4%, and RevPAR dropped 4.2%, reflecting the effects of new mid-tier supply, softer weekday business, lighter group travel, and subdued weekend leisure demand. Operators faced challenges maintaining rate integrity amid moderate demand, while convention and corporate activity remained below previous years. Despite this, leisure, group, and corporate segments stayed balanced, anchored by the Music City Center and downtown entertainment. Looking ahead, major infrastructure projects, including the $2.1 billion Nissan Stadium and East Bank development, along with ongoing conventions, concerts, and events, are expected to support visitation and position Nashville’s hospitality sector for continued resilience beyond Q3 2025.
Key Findings
- Nashville’s market softened as occupancy fell 2.8%, ADR declined 1.4%, and RevPAR dropped 4.2%, reflecting intensified competition, lagging weekday demand, and expanding mid-tier supply.
- The market is highly active with 2,587 rooms under construction and 524 delivered, led by extended-stay and midscale projects in suburban submarkets and luxury developments downtown.
- Projects like the $2.1B Nissan Stadium, Music City Center expansion, and $3B airport upgrade, reinforce long-term tourism and convention demand, despite short term pressure.
12-Month Nashville Occupancy, ADR, & RevPAR
Source: CoStar Group, Inc.
Nashville Demographics
Nashville remains a top leisure and group travel destination, celebrated for its live music, rich cultural heritage, and expanding culinary scene. Key events like CMA Fest, the Academy of Country Music Awards, and major sporting events drive strong visitor demand. The city’s convention sector thrives with the Gaylord Opryland Resort & Convention Center and Music City Center, stimulating new hotels, restaurants, and entertainment in SoBro. Travel access is expanding, with enhanced airline connectivity and modernized facilities at Nashville International Airport through BNA Vision and New Horizons, supporting rising domestic and international arrivals.
BNA Travel Accolades
Q3 2025 | Source: Nashville International Airport
- 1st in Best Airport for Shopping
- 6,557,443 Total Passengers
- 199,857 International Passengers
- 10.4% Passenger Increase YTD
Upcoming Tourism Anchors
- CMA Awards
- Music City Bowl
- Music City Walk of Fame Induction Ceremony
Population, Labor Force, & Income Growth
Source: CoStar Group, Inc.
Nashville Hospitality Construction
Nashville’s hotel development pipeline remains highly active. In Q3 2025, 524 rooms were delivered, while 2,587 rooms remain under construction, representing 4.2% of existing supply, roughly twice the national average. Recent openings include Canopy by Hilton Nashville Downtown The Gulch (181 rooms), Mint House Nashville – Marathon Village (78 rooms), Tru by Hilton Goodlettsville (98 rooms), and The Printing House Hotel. The pipeline emphasizes midscale hotels but includes luxury and boutique projects like Pendry Nashville (180 rooms, 2027), Chloe Nashville (19 rooms, 2025), and Dolly Parton’s SongTeller Hotel (245 rooms, 2026). Combined with transformative developments, including Nissan Stadium and mixed-use districts, the market is positioned for sustained growth.
Pipeline by Scale
Source: CoStar Group, Inc.
Rooms Delivered
Source: CoStar Group, Inc.
Nashville Hospitality Sales
Hotel investment activity in Nashville over the twelve months through September 2025 was steady but selective, dominated by limited- and select-service trades in suburban submarkets. The standout deal remained Host Hotels & Resorts’ $530 million CBD acquisition of the Embassy Suites Downtown and 1 Hotel Nashville, which continues to anchor urban pricing benchmarks. Elsewhere, older full-service assets traded at lower valuations, reflecting tighter underwriting and higher yield expectations. Reported cap rates ranged from the mid-6% to high-7%, consistent with a higher-rate environment. Financing relied on conventional loans for stabilized assets, while 28 CMBS-backed properties include eight maturing by 2027, four of which are on the watchlist.
Nashville Sales Volume
Source: CoStar Group, Inc.
