Atlanta Developer Bringing Starwood's Element To Buckhead
UPDATE, JULY 12, 3:03 P.M. ET: The story has been updated to reflect current information on the developer.
Starwood Hotels & Resorts Worldwide could be debuting a luxury extended-stay brand hotel in Buckhead.
Atlanta-based RevPAR Development is moving forward with plans to develop a 166-room Element hotel next to the Prominence office tower in Buckhead. The six-story hotel will be next to Mill Creek Residential's planned 320-unit mixed-use apartment project at the site.
RevPAR Development filed plans for the Starwood Element hotel with Atlanta late last month. RevPAR Development President Pete Patel said the firm is working on obtaining construction financing with plans to break ground on the hotel by the first quarter of 2018. That would mean Element would open for business by 2020.
“There's definitely demand for high-end extended stay [hotel rooms],” Patel said, noting the heavy corporate presence in Buckhead.
The developer is eyeing a project at a time when new hotel supply statewide is at a high. Last year, hospitality developers unleashed nearly 2,500 rooms, and an additional 5,200 rooms were under construction at the beginning of 2017, according to a recent Marcus & Millichap report. That supply pipeline includes nearly 2,000 select-service hotel rooms in Atlanta.
Despite that, room demand continues to grow, although slower than in 2016. The report projects 1.6% room demand growth this year, down from 2.1% last year. The average revenue per available room throughout Georgia is projected to increase to $65.79, a rate that “exceeds the national pace,” according to Marcus & Millichap.
This will be Starwood's debut of Element in Atlanta. Starwood's eco-conscious hotel flag, Element is slated for strong growth in North America over the next couple of years, according to company information. The Element flag is expected to open another 22 hotels in the U.S. and Canada by 2018, including locations in Philadelphia, Charleston and Nashville and up to eight locations in Texas, according to Starwood. Atlanta was not named among planned new locations.
The Element extended-stay brand uses natural light, healthy options, a 24-hour fitness center and studio and one-bedroom suites with fully equipped kitchens.