Hotel Prices Fall in Atlanta as Interest Rates Weigh on Sales

Hotel sales in Atlanta slowed sharply in 2023 due to the U.S. Federal Reserve’s interest rate hikes and the adoption of tighter lending standards by many financial institutions. The decline in sales activity made price discovery more difficult, leading to some wide price gaps between buyers and sellers, which further constrained sales. As a result, the number of hotels traded in Atlanta fell from 129 in 2022 to 47 in 2023.