The Atlanta market as a whole had a recent 65.6% occupancy, according to Rachelle Johnston, a research analyst for Hendersonville, TN-based Smith Travel Research. Average room rates: $84.45; revenue per available room was 55.44%. Those numbers are slightly higher or similar to the previous year.
"Last year, at the same time, occupancy was 65.5%, the average room rate was $84.16 and RevPAR was 55.15%," she says.
Georgia 400 North has traditionally been viewed as the area's hottest hotel market, but with 34 new hotels over the past six years, it's occupancy dropped to 61%, Keim says.
Gwinnett Place North's 68.6% occupancy in 2000 was the highest anywhere in the area since 1995, reports PKF. The average daily room rate rose from $67.36 to $68.52 from 1999 to last year. That's estimated to increase to about $70 this year.
As of last year, Gwinnett Place North, which includes Buford, Duluth and Suwannee, had 50 hotels with about 5,000 rooms. Virtually all were chains.
The PRK survey found the majority of existing hotels in Gwinnett were in the lower-tier/extended stay category. That represented 26.3% of the market. The second strongest segment was mid-scale without food or beverage, 24.3%.
None of the proposed new hotels are in the upscale or luxury category. Except for a Hilton Garden Inn now under construction, none of the new hotels is larger than 100 rooms, either.
Planned new hotels include a Best Western, two Country Inn & Suites, a Holiday Inn Express, a Wingate Inn, a TownePlace Suites, a SpringHill Suites and a Super 8.
Most of the new hotels planned for Gwinnett are near the Mall of Georgia, which has driven demand, Keim says.
Activity is also driven by new class A office space and job growth in the area, says Richard Tucker, president and CEO of the Gwinnett Chamber of Commerce. Gwinnett is among the leading counties in the area for population and job growth, he adds.
Gwinnett's appeal as an outlying area is also enhanced by the increasingly expensive land in areas such as Buckhead and Downtown, as well as sewer moratoriums.
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David Wilkening
David Wilkening began his long journalism career as a police reporter for Chicago-area newspapers. He became a writer-editor for major newspapers in Chicago, Washington, Detroit and Florida. He has been a business editor, political editor and travel editor for newspapers and magazines. He tried for a while to be a political operative but did better as an adjunct college professor teaching English and journalism. He is the author of several books, both ghost-written and under his own name. He is also a widely published freelance writer who currently lives in Orlando.
