News Summary
Atlanta is experiencing a significant surge in hotel construction, with 168 projects totaling 19,431 rooms, second only to Dallas. The influx of new hotels and renovations indicates a thriving hospitality market, attracting attention from investors and developers. Major future projects, such as Hotel Phoenix and Moxy by Marriott, reflect the city’s commitment to expanding its offerings ahead of events like the 2026 FIFA World Cup. With a healthy occupancy rate and rising room rates, Atlanta’s hotel sector predicts robust growth in the coming years.
Atlanta’s Hotel Construction Surge Thrives in 2024
In a landscape marked by remarkable growth, Atlanta is firmly positioned as a hotspot for hotel development, boasting an impressive construction pipeline. According to the latest findings from the United States Construction Pipeline Trend Report by Lodging Econometrics, the city has reached a groundbreaking total of 168 hotel projects, comprising a staggering 19,431 rooms. This feats places Atlanta in the prestigious second spot nationally for hotel construction, just behind Dallas, which leads with 204 projects and 23,669 rooms.
Ranking Among the Titans
While Dallas continues to dominate, Atlanta is part of an elite group of cities making waves in hotel construction. Other notable contenders include Nashville and Phoenix, each with 130 projects respectively, and the Inland Empire with 122 projects. Atlanta’s robust construction figures signify a vibrant response to the hospitality demand in the region, making it a focal point for investors and developers.
Current and Future Developments
Focusing on the current status of the pipeline, Atlanta ranks fourth for projects under construction, with 27 projects underway, which account for 3,211 rooms. Leading the way in this category is Dallas with 31 projects followed closely by both Phoenix and New York City, showcasing the competitive nature of hospitality development in major U.S. cities.
Looking ahead, Atlanta’s prospects remain strong, with 62 planned construction projects set to break ground in the upcoming 12 months, alongside an impressive 79 projects in the early planning stages amounting to over 8,675 rooms. This continuous influx of projects is a sure indicator that the hospitality market in Atlanta remains on an upward trajectory.
Hotel Renovations and Market Growth
Beyond new constructions, the city is also embracing renovations and conversions, with a total of 28 renovation projects currently in the pipeline, accounting for 3,595 rooms. Washington, D.C. leads in this category with 34 projects. The rise in hotel openings in Atlanta, particularly noted in Q4 of 2024, signals a robust demand and a strengthening economy in the hospitality sector.
Major Projects On the Horizon
Among the standout developments is the highly anticipated Hotel Phoenix, scheduled to open in summer 2025 at 70 Centennial Olympic Park Drive NW. This hotel will feature 292 guest rooms along with 15,000 square feet of flexible event space, all while reflecting the city’s railroad heritage through its unique materials and design. Additionally, the sprawling Centennial Yards development, valued at approximately $5 billion, showcases not only Hotel Phoenix but also plans for The Mitchell, a residential tower featuring 304 units.
Not to be overlooked is the upcoming Moxy by Marriott hotel in Downtown Atlanta, with plans to break ground in summer 2024. Aiming for completion by the 2026 FIFA World Cup, this project emphasizes the city’s commitment to expanding its hospitality offerings.
Demand Meets Opportunity
Atlanta’s hotel supply is projected to expand significantly, with over 2,500 new rooms slated to enter the market this year alone, marking a noticeable 10.6% increase from the area’s 24-year average. Despite the burgeoning number of hotel rooms, occupancy rates remain healthy, reaching 67.4% in 2023. The average daily room rate has also seen a remarkable increase, rising to $128.24, showcasing a 13% surge since 2019.
Conclusion
Overall, the ongoing developments and renovations in Atlanta reflect a broader trend of growth in the U.S. hotel sector, with a particular focus on the South and Southwest regions. The city’s dynamic hospitality landscape is set to offer exciting opportunities for visitors and a burgeoning market for investors, cultivating an era of transformation for Atlanta.
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Additional Resources
- CoStar: Atlanta’s Hotel Construction Pipeline
- Wikipedia: Hotel Construction
- Lodging Magazine: Dallas Leads Hotel Construction
- Google Search: Hotel Construction Pipeline
- What Now Atlanta: Centennial Yards Hotel Topping Out
- Google Scholar: Hotel Development
- Bisnow: Moxy Hotel Breaking Ground in Atlanta
- Encyclopedia Britannica: Hotel Development
