Three hotels have succumbed to weakness in the Atlanta market. Among the recent casualties is the 502-room Marriott Renaissance. Rates have been pushed lower by an abundance of capacity that has caused even top brands to get stuck charging less than $100 a night. When there’s far more supply than demand, of course, this is what happens.
Joining the Renaissance in the graveyard will be the city’s Wyndam Garden Hotel and Baymont Inn & Suites. Georgia State University will be buying both and converting them to dorms. The future of the Renaissance remains uncertain, though 75 percent of its laid-off staff will be moving to other Marriott properties.
Given the state of the Atlanta hotel market, there’s the risk that more hotels could follow:
“More and more property owners are asking themselves the question, ‘Is operating this facility as a hotel really what produces the maximum economic return?’” Mark Woodworth, president of PKF Hospitality Research, tells the [Atlanta Journal-Constitution].
[photo by Nrbelex via Flickr]