Booming Hospitality in the Southeast: Investment Trends Across the Carolinas and Georgia

Expanding Horizons: Key Insights into the Southeast’s Hospitality Landscape

The Southeast region, encompassing the Carolinas and Georgia, remains a beacon for hotel investors, driven by its vibrant tourism industry, economic growth, and strategic positioning. Major cities like Charleston, Atlanta, Savannah, Raleigh-Durham, and Charlotte have consistently shown resilience and growth potential, making them prime targets for hospitality development and acquisition.

Charleston, South Carolina
Known for its antebellum architecture, cultural festivals, and pristine beaches, Charleston is a perennial favorite for leisure and business travelers alike. Key Drivers:
– A burgeoning culinary scene and year-round events like Spoleto Festival USA.
– Major corporate activity, including Boeing’s expansion and the Volvo industrial campus.

Market Performance:
Despite a modest year-over-year decline in occupancy (down 1.1%), Charleston maintains a strong ADR of $175.03, sustaining its status as a premium destination.

Future Prospects:
Twelve hotel projects are in development, signaling long-term confidence in the market. With improving financing conditions, transaction volumes are likely to accelerate.

Atlanta, Georgia
A powerhouse city and transportation hub, Atlanta is bolstered by Fortune 500 companies, world-class venues, and major upcoming events like the FIFA 2026 World Cup.

Current Trends:
– Occupancy Challenges: New supply, including the flagship Signia by Hilton, slightly suppressed RevPAR in 2024, but ADR remains steady.
– Construction Boom: Eleven active projects signal continued investor interest in Atlanta’s economic drivers.

Savannah, Georgia
Savannah blends coastal allure with historical charm, drawing steady tourism and business demand. Expansion projects at the Savannah Convention Center and Port of Savannah are set to significantly bolster hotel demand.

Performance Highlights:
– Stable occupancy at 72.8% with a strong ADR of $152.43, driven by the Historic District and nearby Gulfstream Aerospace.
– Upcoming boutique hotel openings align with the rising trend of experiential travel.

Raleigh-Durham, North Carolina
The Research Triangle’s mix of tech hubs, universities, and cultural attractions makes it a prime area for hotel growth.

Market Outlook:
– A 5.7% rise in RevPAR (to $86.83) highlights growing traveler demand.
– Active pipeline: 27 planned projects worth $500 million aim to meet increasing accommodation needs.

Charlotte, North Carolina
Charlotte, a financial hub with a growing tech scene, is expanding its hospitality infrastructure to cater to both business and leisure travelers.

Investment Trends:
– 33 active projects are set to add over 3,140 rooms to the city.
– While the average price per hotel unit declined in 2024, transaction volumes remain robust.

Outlook for Investors
These Southeast markets continue to attract attention due to their cultural richness, expanding economies, and strategic importance. As financing conditions improve, these cities are poised for increased transaction activity, offering lucrative opportunities for investors.

For further details or to explore investment opportunities, connect with experts specializing in these dynamic markets.