In a major metropolitan city like Atlanta, it’s understandable that both supply and demand are up. A large convention and sports destination, Atlanta welcomed 51.5 million visitors in 2015 and is scheduled to host 18 conventions this year. Leisure demand is also due to rise in relation to a few key projects, including the opening of the College Football Hall of Fame and the imminent opening of the $1.5 billion Falcon’s stadium downtown. Atlanta will also play host to the 2019 Super Bowl.
The Atlanta Opportunity
Current projects taking place:
- With 810 hotels currently at 95,843 rooms, Atlanta will see another 82 developed (9,495 rooms)
- 2,000 new rooms will become available this year alone (2.2 percent increase from 2016)
- McKibbon Hospitality along with Coro Realty Advisors will build a 186-room Hampton Inn & Suites by Hilton in Buckhead
- The 260-room Omni Atlanta will open this year, as the flagship hotel of SunTrust Park, home to the Atlanta Braves
Past valuations and transactions that speak to the current opportunity include:
- Average daily rate is up 5.9 percent to $104.23, RevPAR is up the same to $74.06
- Transaction activity is up since 2015
- The Hilton Downtown Atlanta sold at $174 million
- The Hilton Garden Inn/Homewood Suites in Midtown sold for $58.3 million, at high per-key price of $256,000 per room
- Valuation is expected to grow 12 percent over the next four year
Because, you will be armed with ideas, solutions and actionable insights that will make an immediate impact on your property. Whether you focus on infrastructure investment opportunities or strategies that force you to “think and act locally” in targeting specific growth sectors, you can take steps that positively influence your ROI.
"Supply is up, demand is up, and neither is expected to fall in the foreseeable future. With the new Falcons' and Braves' stadiums going up and the city's successful bid to host the 2019 Super Bowl, Atlanta is on track to experience annual growth and tourism numbers that rival much larger cities." - Bhavesh Patel, AAHOA Vice Chairman