"While severe weather inflated occupancy rates during the fourth quarter, investments in Augusta and Aiken, SC continue to benefit the region’s tourism industry," said Colliers.

Savannah was another area in Georgia where hotels saw strong growth in key fundamentals. For example, ADR and RevPAR in the region increased by 4.4 percent and four percent in 2024. Plus, the 69.2 percent occupancy rate marks the second-highest level in the last half-decade.

Meanwhile, Atlanta slumped. ADR and RevPAR in the metro area dipped 0.1 percent and 0.4 percent year-over-year, while occupancy witnessed a 20 basis point drop and remains 3.2 percent below the pre-pandemic levels. However, Colliers is optimistic about a recovery in Atlanta, although it warned that "economic near-term headwinds will limit performance" in the region.

"Group occupancy continues to perform well and rebound from the pandemic slowdown as corporate travel continues to rebound," it said.

"The outlook for Atlanta remains positive, as Atlanta remains a top destination for corporate and group travel in the southeast."

The bullishness comes as the MLB All-Star Game will take place at Truist Park (the home of the Atlanta Braves) this year, and the 2028 Super Bowl will be played at the Atlanta Falcons' Mercedes-Benz Stadium.

Despite inventory gains at the highest levels since 2016, with 232 new hotel rooms in Augusta, the city is expected to see "strong" increases in ADRs through this year, according to Colliers. Savannah is projected to see new room increases of 10 percent by 2026.

"New supply may lower occupancy rates next year, but steady demand is expected to deliver strong returns in the near term," Colliers wrote regarding Savannah's hotel market.

At the national level, ADR grew by 1.7 percent in 2024 and is projected to rise by another 1.8 percent this year. Also, luxury hotel rates dipped by 0.4 percent last year.