Plan Your Meetings

Atlanta’s hospitality industry to rebound ahead of other U.S. cities

A promising 2010 is on the books for Atlanta. With a record 19 conventions, each having 5,000 or more expected attendees, Atlanta is poised for a significant lodging market turnaround.

“We see a light at the end of the tunnel for the city of Atlanta, and [conventions] should be the driver,” said William Pate, Atlanta Convention and Visitors Bureau president and CEO.

According to PKF Hospitality Research forecasts, Atlanta’s revenue per available room (RevPAR) should bottom out by year’s end, but begin to climb in first-quarter 2010. Occupancy should see an incremental gain of 0.5 percent in 2010, with a RevPAR boost of 4.1 percent. While the demand for rooms is expected to rise in first-quarter 2010, supply and occupancy levels aren’t projected to increase until fourth-quarter 2010. Hospitality employment rates are expected to rebound in the third quarter.

Atlanta has already booked 220,000 more convention room nights in 2010 than it has for 2009. However, it isn’t projected to regain its 2006-2007 peak occupancy and room rates until 2013. Provided the economy levels out and companies fulfill their travel plans, Atlanta’s positive booking pace is expected to be at or above target for the next seven years (ahead of its six main competitors).