Atlanta has finally taken off with this statistic as proof: by 2010, the city will have at least 38 new hotels with 3,931 rooms.
“For years after the terrorist attacks of Sept. 11, Atlanta saw new projects stagnate or get taken off the books,” reported the Atlanta Business Chronicle.
The city added only a dozen hotels in the past two years, said Mark Woodworth, a consultant with PKF Consulting.
His list shows 53 hotels in Atlanta, either in planning or development, that could bring more than 7,100 rooms on line.
The reason for the new prosperity?
Simple supply and demand.
As occupancies rose, hoteliers raised their rates, adding to developer demand, according to Mr Woodworth.
“We expect investor appetite for hotel deals to grow in 2006, especially in major markets where room rates have shown strength and occupancy rates have improved,” said Michael Fishbin, director of Ernst & Young’s hospitality services.
Unlike some cities building mega-hotels, observers said the future of hotels in Atlanta involved smaller, niche properties near attractions such as the World of Coke.
Report by David Wilkening
