Return-to-office plans, more events should boost Atlanta hotels

Historically, Atlanta has attracted balanced hotel demand from business travelers, vacationers and groups of guests who book more than 10 rooms, often for major events such as weddings or conventions.

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Demand dynamics shifted following the onset of the coronavirus pandemic as reduced business travel resulted in a loss of occupied rooms during weekdays. Additionally, convention volume, while on a strong recovery trajectory throughout 2024, was insufficient to serve as area hotels' group base.

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However, new demand dynamics are on the rise this year. Updated return-to-office plans from Atlanta's large corporate tenants are expected to drive weekday occupancy in several business-centric areas. Also, compression nights from large conventions and events, especially sports-related, are expected to fuel rate growth for area hotels.

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Updated return-to-office plans projected to lift occupancy

When workers return to the office, more corporate meetings, training sessions and sales conferences take place, triggering additional demand for hotels. External engagements such as client visits and vendor meetings also prompt out-of-town visitations that require lodging accommodations.

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Updated return-to-office plans have aided the recovery of business travel. Sandy Springs-based UPS started a five-day in-office policy in March 2024. AT&T, which has a regional office in the city's affluent Buckhead area, since January has had its workers back in the office five days a week.

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In addition, NCR Voyix, the Midtown-based successor of digital commerce company NCR, is mandating its employees work five days in the office beginning May 2025. Similarly, Vinings-based Home Depot is enforcing a five-day in-office policy starting June 2025.

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Atlanta is known for its decentralized geography, with business districts scattered throughout the market. As more return-to-office initiatives are rolled out, the market's hotel industry should benefit on a wider scale.

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Atlanta's central business district, which encompasses both downtown and Midtown, is the largest business area, containing corporate headquarters for Fortune 500 companies such as the Coca-Cola Co. and electricity producer Southern Co.

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Buckhead is also home to various business and finance tenants, such as JPMorgan Chase, Bank of America, Salesforce, Wells Fargo and home construction company PulteGroup, in addition to the aforementioned AT&T.

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Also, the Galleria-Marietta and Perimeter Center-Roswell areas contain significant office space. Fortune 100 corporations such as Home Depot and UPS help drive material weekday business travel in these submarkets.

 

Events expected to drive rate growth

Downtown Atlanta is home to the Georgia World Congress Center, the fourth-largest convention center in the country, and the Mercedez-Benz Stadium, where numerous sports and entertainment events occur. Compression nights, or periods when demand for hotel rooms is extremely high, have been especially strong since the beginning of the year, with major conventions and events taking place in these venues.

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The stadium hosted the 2025 College Football Playoff National Championship on Monday, Jan. 20. Occupancy in the central business district that night was a record 94%, with a significant average daily rate of $472 for that night. Contrary to normal demand patterns, Sunday metrics were also boosted, posting an 88% occupancy with an average rate of nearly $414.

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Just a week later, the International Production and Processing Expo took place at the GWCC from Tuesday, Jan. 28, through Thursday, Jan. 30. The trade show recorded over 30,000 attendees. Occupancy for Monday through Wednesday nights was significantly elevated, peaking on Tuesday at a record 97% for the central business district. Tuesday's ADR was also nearly $95 higher than the previous Tuesday.

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Similarly, the 2025 Cheersport National All Star Championship occurred at the GWCC on the weekend immediately after Valentine's Day. The competition attracted over 20,000 athletes, making it the largest cheerleading competition in the world. Compression again was felt on Friday and Saturday nights, when both achieved an occupancy of over 90%. Rates were also nearly $85 higher than the previous weekend.

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Moreover, the Mercedes-Benz Stadium is scheduled to host eight FIFA World Cup 2026 matches, including a semifinal, and is set to host Super Bowl LXII in 2028. These events will undoubtedly boost area hotel performance during compression nights.