AJ Capital Partners has received $62.5 million in financing to refinance its Graduate by Hilton Nashville hotel. The company aims to strengthen its market position in Nashville, known as 'Music City', with this move. The Peachtree Group provided the three-year loan with two twelve-month extension options for the 205-room hotel, which opened in December 2019 opposite Vanderbilt University.
The financing was negotiated by CBRE, with a team led by Henry Fenmore, Tom Traynor and Tom Rugg. Jared Schlosser, Head of Lending at the Peachtree Group, commented positively on the hotel's performance in recent years, after it overcame challenges posed by the COVID-19 pandemic shortly after its opening in late 2019.
Strong Performance and Strategic Partnerships
Schlosser emphasised that the hotel has seen an upturn since Hilton took over the operations of the Graduate brand in 2024. AJ Capital remains the owner, and this partnership has expanded the hotel's customer base in Nashville beyond Vanderbilt University. He highlighted that the excellent location and the continuously improving performance of the hotel were decisive factors for the financing decision. Schlosser described the Graduate by Hilton Nashville as a 'beautiful hotel with a very good sponsor' that had met all requirements.
Nashville's Midtown district is one of the city's highest-performing hospitality submarkets. It benefits from visitors to Vanderbilt University and is also less than a mile from the Music Row district. Other key demand drivers near the hotel include the Vanderbilt University Medical Center, Belmont University, and the Bridgestone Arena. The hotel is located at 101 20th Avenue North.
Amenities and Brand Expansion
The hotel's amenities include a rooftop pool and a fitness centre. It also houses 'White Limozeen', a Dolly Parton-inspired rooftop restaurant and bar. AJ Capital launched the Graduate brand in 2014 with initial locations near the University of Georgia, Arizona State University, and the University of Mississippi. The company, led by CEO Ben Weprin, has expanded the brand to 33 hotels near university campuses in the US and the UK.
