Atlanta Hotel Market Update, Feb 2023
By Paul Breslin CHA, CHE, ISHC on February 28, 2023
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.