Hotel growth in downtown AthensPosted: April 3, 2014
By Brittney Cain
With the University of Georgia’s growth and number of conventions being held in Athens, the downtown area is becoming a site of construction and further expansion for hotels to accommodate the increase of people.
The Holiday Inn on West Broad Street has submitted a permit application on the building for a renovation and expansion.
Modifications to the parking lot and driveway are included in the proposed work.
The hotel industry in Athens, according to Hannah Smith, director of marketing and communications at the Athens Convention and Visitors Bureau (CVB), is growing to meet the needs of increasing number of meetings and conventions.
In 2003, there were a total of 14 hotels in the Athens-Clarke County area, according to the U.S. Census. The most recent census data revealed that in 2011 the total number of hotels jumped to 22 in the area.
And the Convention and Visitors Bureau reported there are 10 hotels within one mile of the Classic Center.
Brands typically do better in the downtown area, said Mike Waldrip, President of the Athens Area Hotel Association (AAHA).
Because occupancies and rates are driven by this brand loyalty, past experience, service and location, he said hotels in the downtown district have to create originality to set themselves apart from others nearby.
According to Foundry Park & Inn‘s website, they “could have built 300 ordinary hotel rooms, but chose instead to create a warm, welcoming Inn that feels like a home away from home.”
In addition to hotels’ vision of creating a new experience for customers, Hotel Indigo’s website said they “offer a unique experience that reflects the culture of its neighborhood.”
Hotel Indigo instilled “green features” for guests such as natural light and views and thermal controls powered by energy-efficient systems in each room. In 2011, Hotel Indigo was nominated for North America’s Leading Green Hotel.
Other hotels try to set themselves apart by providing meeting and convention rooms for business or football “game-day” additions for fans.
Waldrip noted that expansion and renovation of the hotels in the downtown area is based purely on demand.
“City-wide occupancy is above 55 percent but hotels operate on such slim margins that for most hotels this number needs to be above 60%,” Waldrip said. “When occupancies reach around 65percent expansion may be warranted.”
Construction costs, Waldrip said, range from $70,000 to $100,000 to build a mid-level hotel room. And in the last 10 years, the market has added about 475 rooms.
“A new Hyatt Place is planned for construction later in 2014,” Smith said. “[It] will be the first connecting hotel to the Classic Center.”
And, Smith said, the Holiday Inn is not the only hotel attempting to upgrade its facilities. Foundry Park Inn & Spa is preparing a massive renovation this summer.
With the culture of the University and the tradition of football games, it is not surprising that hotels are more occupied during the fall semester.
Georgia Gameday Center is specifically designed to create a “home away from home experience that is perfect for a UGA football weekend,” with all 133 units tailored to any UGA fan with a sea of red and black furniture.
Meetings and conventions are also frequently held in the downtown Athens area. Smith estimated that each meeting attendee spends on average over $219 per day.
“Tourism brings in $246 million per year to Athens-Clarke County and supports 2,450 local jobs,” Smith said. “Due to tourism spending and tax collections, each Athens-Clarke County household saves almost $400 per year in taxes.”
Hotels pay an additional 7% hotel and motel tax, which funds the Convention and Visitors Bureau and parts of the Classic Center.
“It is likely that over the next two or three years there will be some expansion of the number of rooms available downtown,” Waldrip noted. “This will be driven by the University’s growth and the expansion of the Classic Center.”