Georgia Hotel Industry Report | 2024 Q3
- zaverhotels
- Feb 5
- 1 min read
Slower growth and inflationary pressure are impacting leisure travel, while corporate and group events continued to gain momentum. Annual performance gains decreased across all sectors compared to 2023. Despite a slowdown in leisure travel overall, occupancy and ADR performance in luxury and upscale segments fueled the strongest year-over-year gains in Q3 2024. In Georgia, overall RevPAR declined 0.6% YOY despite a 2.0% increase in ADR. Occupancy fell 2.0% from the prior year and was the lowest third quarter occupancy since the pandemic. Overall sales volume fell 32% from the prior year but recent interest rate cuts provide optimism for the investment environment heading into 2025. Supply growth continued to ease in the third quarter: 5,895 rooms are under construction, the first time falling below 6,000 since Q2 2022. Hotel performance is forecasted to improve in 2025 as slower supply growth helps stabilize occupancy rates. Large events will also benefit the Atlanta region, recently being selected to host the Super Bowl for the fourth time in 2028, on the heels of hosting eight FIFA World Cup matches in 2026 and the MLB All-Star game in 2025.
