United States -  Atlanta

Atlanta serves as a major transportation hub, with Hartsfield-Jackson Atlanta International Airport (ATL) ranked the world's busiest passenger airport from 1998 until the onset of the COVID pandemic. Primary sources of lodging demand comprise local employers and headquarters offices, including over 15 Fortune 500 companies, as well as convention and entertainment venues such as the Georgia World Congress Center, Mercedes-Benz Stadium, Truist Park, and Georgia Aquarium. In 2010, occupancy began to rebound as demand increased significantly following the recession and as citywide convention activity generated considerable group demand; this upward trend continued through 2015. From 2015 through 2019, occupancy remained relatively stable, as strong convention demand and several large-scale developments offset the impact of new supply, including over 1,000 new guestrooms at twelve properties in 2017 and several other new hotels in 2018. After several years of decline, ADR rebounded in 2012, in line with the broader economic recovery and strengthening demand in the Atlanta market; this growth continued through year-end 2019. Super Bowl LIII in February 2019 bolstered both ADR and RevPAR but did not generate as many room nights as local hoteliers were expecting; however, the absorption of new supply helped RevPAR grow faster than the national average.

The onset of the COVID-19 pandemic in March 2020 resulted in a substantial RevPAR decline of almost 50.0% that year. On April 3, 2020, the State of Georgia issued a stay-at-home order in response to the COVID-19 pandemic; while Georgia was the first state to reopen nationally, economic activity in Atlanta stagnated through the end of the year given reduced travel through ATL, the cancellation of nearly all meetings and events in the city, and the lagging return of employees to the office. The successful roll-out of the vaccines in 2021 supported the market's rebound that year and a nearly $20.00 increase in RevPAR; demand growth was led by a return of leisure travel, along with some limited group and commercial activity. Data for 2022 show a record-high ADR and continued occupancy growth despite an influx of new supply; moreover, ATL has regained its status as the world's busiest hub, and corporate and group demand are steadily returning to the market. As a result, RevPAR has returned to pre-COVID levels, with the 2022 RevPAR exceeding all years but the 2019 Super Bowl year. Data for the first half of 2023 illustrate increases across all performance metrics, as the market continued to absorb the new supply. The overall outlook is positive given the dynamics of this market and significant upcoming events such as the FIFA World Cup, for which Atlanta will be a host city in 2026.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Courtney Vris
Senior Project Manager
[email protected]
  • +1 203 243-0545 (m)