United States -  Atlanta

Atlanta serves as a major transportation hub, with Hartsfield-Jackson Atlanta International Airport ranked the world's busiest passenger airport from 1998 through 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 levels 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 2016 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 boosted 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% that year. On April 3, 2020, the State of Georgia issued a stay-at-home order in response to the COVID-19 pandemic, which led to the temporary closure of all non-essential businesses and significantly reduced hotel demand. At that time, many employers in the market temporarily shut down operations in response to the COVID-19 pandemic. Georgia was the first state to reopen; the stay-at-home order expired for most residents on April 30, 2020. Over the course of 2020, economic activity stagnated, due in part to reduced travel at Hartsfield-Jackson Atlanta International Airport and the cancellation of nearly all meetings and events in the city. However, the success of local and national vaccination efforts resulted in a return of leisure travel, along with some limited group and commercial activity, allowing occupancy for 2021 to finish near the 60% mark, and ADR to again break $100. It is important to note, however, that Atlanta remains reliant on group and corporate demand, and the return of these two demand segments will dictate the speed of the market's return to pre-COVID levels.

* 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:

Legend
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:

Adam Lair, MAI, MRICS
Managing Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 415 350-6779 (w)