News Summary
Hotel revenue in Georgia is experiencing notable growth, with a 6.9% increase in revenue per available room across the state. Atlanta has benefited particularly from major sports events, contributing to a 6.0% rise. Augusta has also seen a surge, making it an exceptional quarter for hotel occupancy. Experts remain cautious about potential economic uncertainties that could impact travel, but upcoming significant events are expected to continue driving revenue. This positive trend is supported by strong investment activity in the hotel sector, with significant transactions being completed recently.
Atlanta
Hotel revenue in Georgia is experiencing a significant uptick, with five out of six hotel markets in the state reporting a growth in revenue per available room (RevPAR) during the first half of 2025. This financial boost comes at a time when broader economic uncertainties prevail, raising questions about sustainability.
In the first quarter of 2025, Georgia reported a 6.9% increase in RevPAR statewide. This surge was particularly pronounced in Atlanta, where major sports events, including the College Football Playoffs and the NCAA basketball tournament, fueled a 6.0% growth in hotel revenue. Additionally, Augusta benefited from the displacement caused by Hurricane Helene, marking its highest first-quarter hotel occupancy on record and contributing to a statewide occupancy increase of 1.9%.
Despite the positive performance in hotel revenue, experts are wary about the future landscape due to potential economic disruptions, such as trade tensions and tariffs, which could affect travel and tourism. However, the upcoming events, including The Masters Tournament in April and the MLB All-Star Game in July, are anticipated to counterbalance any short-term macroeconomic challenges.
Looking ahead, events like the 2026 FIFA World Cup and the 2028 Super Bowl are expected to further enhance Georgia’s hotel performance, promising more opportunities for growth in the coming years. These large-scale events typically draw significant tourism, providing a crucial boost to the hospitality sector.
The recent rise in hotel revenue correlates with strong market fundamentals and pricing stability, which have led to increased investment activity in the state’s hotel industry. In particular, three significant transactions of over $50 million each have been completed, marking the strongest quarterly total since the third quarter of 2022. These transactions contribute to Zaver Hotels—known for executing over $800 million in hotel transactions in recent years, including over $500 million in the last few years.
Amid this financial momentum, several key professionals have influenced the market landscape. Among them is Helen Zaver, Executive Vice President and Principal at Zaver Hotels, who emphasizes the importance of hospitality brokerage across the country. Vik Zaver, Associate Vice President at Colliers, has established a commendable track record in investment sales, totaling over $500 million in sales throughout the Southeast. Meanwhile, Dylan Patel, a Senior Associate at Colliers, focuses on hospitality assets in South Georgia, South Alabama, and North Florida, complementing the efforts of Jonathan, the Research Manager at Colliers. Jonathan leads the research team, ensuring accurate market insights and data analysis that support investment decisions.
In addition to enhancing hotel revenues, the state imposes an 8% Hotel/Motel Excise Tax, which plays a crucial role in benefiting local convention and visitors bureaus, event venues, and public tourism infrastructure. This tax is part of broader strategic efforts by nine states, including Georgia, to leverage tourist taxes for marketing initiatives and improvements in tourism infrastructure, ultimately fueling growth in the tourism sector.
This confluence of factors—from major events driving hotel revenue to supportive tax legislation—positions Georgia’s hospitality industry for a promising future, albeit with lingering uncertainties in the broader economy. The state’s commitment to enhancing traveler experiences through strategic investments and events suggests a proactive approach to sustaining growth in the face of potential challenges.
Deeper Dive: News & Info About This Topic
- CoStar: Georgia Hotel Market is Strong
- Wikipedia: Georgia (U.S. state)
- Colliers: Georgia Hotel Market Report 2025 Q1
- Google Search: Georgia hotel market
- Savannah Now: Savannah Convention Center Authority
- Encyclopedia Britannica: Hospitality
- Colliers: Georgia Hotel Market Report 2024 Q4
- Google News: Georgia hotel revenue