Some of the most vocal supporters of Nashville’s new downtown convention center are less certain they want a city-financed headquarters hotel to go with it.
Proponents of the convention center project say it needs an adjacent hotel to really succeed. As of yet, the city hasn’t found private financing for the $300 million complex, and Metro officials don’t sound hopeful.
Walt Baker leads the association representing hotels in Tennessee, which was a big backer of the convention center. He says his membership wants to be certain there will be price controls in place for the headquarters hotel. That would mean that Marriot Marquis, which has been chosen to manage the hotel, couldn’t deeply discount the rooms.
“If the comfort level is there that Metro is not going to exert a certain amount of pressure or the managing partner has control over pricing to the comfort and satisfaction of the hotels that they will be competing against, then I think we will be fine with it.”
Baker says he feels Metro is listening to his concerns but the details of such a deal will be critical. Until the finer points are reached, the hotel association won’t be front and center pressing the city to fund construction.
Baker worries if the city picks up the tab, the hotel’s rates could undercut the market.
“Most preferable is private. The second most preferable is some sort of combination between the two. But the devil will be in the details as to how it’s structured and what protections there are to make sure hotels don’t get into competition with Metro.”
But price controls may be a moot point since Baker believes the hotel will be bought by a private company even if Metro pays to build it.
The city has a year to figure out how to pay for a headquarters hotel, according to Mayor Dean, because construction will take less time than the convention center itself. Even those who didn’t particularly like paying for a convention center believe the project does need a companion hotel to be successful.
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