Atlanta’s hotel market continues growing, keeping up with the national trend. While there is 1.9% room supply growth in the US market, the 11.0% growth in demand has greatly boosted the occupancy and ADR on a national basis, with annual growth rates of 8.9% and 19.1%, respectively. The positive trend also arrived in Atlanta, which showed an 8.4% growth in occupancy and 18.0% growth in ADR, only slightly behind the national data for the year 2022. Transients serve as the major revenue stream, while better revenue management could drive up performance. For the Atlanta market, transient customers have made up 60.5% of the demand in the market. The ADR for transient customers is $196.93, which serves as a major source of revenue for hotels. Group customers take up 32.7% of demand at $185.42. The rest of the demand is contributed by contract customers, who pay at a discount of $97.70.

In recent years, the concept of “traveling with intention” has gained momentum, reflecting a shift in traveller expectations and behaviours towards more meaningful and impactful experiences.

While the future cannot be perfectly predicted, protectants can be put into place that provides the option of a favorable choice of action. The COVID-19 pandemic has put additional pressure on hotel owners and operators, which in turn has resulted in disunity during a critical period. It is times like these, that owners and operators find the terms of their Hotel Management Agreement (HMA), which they had made clear sense at the time, did not stand the test of time. Why is it essential for the HMA to be a win-win? Some may call it a ‘rude awakening’, but perhaps it is more ‘trial by fire’ of the management agreement. In this report, we first discuss the importance of a ‘win-win’ HMA and why it matters. Then the pressure points of an HMA that are often highly contended such as the term, fees, centralized services, performance test, and the language found throughout most agreements. Finally, we conclude with guidance for hotel owners on the best methods to achieve a win-win HMA.

The last recession, coupled with the maturation of the social web, has led to new purchasing behaviors and disruption in the travel industry. While the hospitality sector is often perceived as slow to adapt to change, how resorts respond to shifting consumer preference will determine their viability. In this latest report, we look at how the Caribbean resort product is evolving to stay relevant in an increasingly global tourism market.