Demand for rooms in Nashville surges, leading luxury hotels to move in.

CNBC's new quarterly series, Cities of Success, examines cities that have evolved into thriving business centers with an entrepreneurial atmosphere, drawing in capital, corporations, and talent.

Music City is experiencing an unprecedented increase in luxury hotels, with esteemed brands such as the Four Seasons Hotel, the W Hotel, and the Grand Hyatt now open for business.

Since 2013, over 90 new hotels have been built in Nashville, providing more than 14,000 rooms to the city's accommodation options. In the past year, hotel expansion has generated over $2 billion in revenue.

According to real estate developer Dean Stratouly, this city is great, generally supportive of growth and development, as he stated on CNBC.

Despite its widespread popularity, Nashville hot chicken remains a significant part of its hometown's cultural identity.

Nashville is a unique place that offers a combination of things that are not found everywhere. The city boasts Broadway, music, and the NFL's Tennessee Titans, making it an excellent destination to visit.

Nashville's new Four Seasons Luxury Hotel is being led by Stratouly, who has been instrumental in its construction. The hotel features 235 rooms in a 40-story glass tower, including a 2,200 square foot penthouse suite that costs $10,000 or more per night.

And he’s not alone in moving in.

In 2020, Hyatt launched the Grand Hyatt Nashville, a 591-room hotel located in a 25-story tower, featuring a rooftop bar, an outdoor pool deck, and over 7,000 square meters of meeting and events space.

In 2021, a hotel named W Nashville opened in the Gulch neighborhood, featuring 286 rooms and 60 suites in a 14-story mirrored tower that offers a 360-degree view.

The $585 million Ritz-Carlton project in Nashville's SoBro district was originally scheduled to begin construction in late 2022 but has been delayed due to a developer dispute and a $10 million lawsuit.

According to Stratouly, while luxury hotels are being built, Nashville is struggling to keep up.

As the Four Seasons project progressed and designs were finalized, it became clear that no local laundry service could handle the hotel's daily load of 3,000 pounds of linens. To solve this issue, the hotel outsourced its linens to Alabama, necessitating a daily round-trip journey of over four hours by truck, according to Stratouly.

During the construction of the hotel in Nashville, Stratouly stated that the team encountered a significant shortage of skilled labor and building inspectors.

Their success has resulted in the problem they are facing, which is the inability to keep up with the market's demand for faster concept movement.

The Nashville department of codes and building safety is working to secure staff and decrease inspection times, acknowledged City officials.

The surge in hotel demand is primarily driven by the Music City Center, a 2 million square foot convention center, according to CEO Charles Starks, who states that it has sparked a need for new accommodations.

Starks announced that on the center's opening day in 2013, there were 125 large events pre-booked, and attendees reserved more than one million hotel rooms through 2024.

Starks stated that there is approximately $500 million in annual direct economic impact.

CNBC will air the "Cities of Success" special featuring Nashville on Dec. 6 at 10 p.m. ET/PT.