Hospitality Feasibility Study Shows Significant Increase in Need for Toccoa Lodging

As reported yesterday, a Hotel Feasibility Study, jointly funded by Toccoa and Stephens County, was recently completed, with the resulting report being presented to the Stephens County Development Authority and city and county officials last week. 

The study was commissioned to update findings from a 2017 study, also jointly funded by the city and county.

As pointed out in yesterday’s news report, since 2017, Toccoa/Stephens County has added businesses, industries, event venues, sports facilities and more – but has not seen a corresponding growth in the lodging options in the community.

While a 2021 study by University of Georgia Cooperative Extension showed that hospitality, travel and amusement businesses contributed $100 million dollars to Stephens County’s economy, accounting for 4.8% of the county’s output, and contributed $27.4 million dollars in earnings, the county has failed to attract the attention of the major hotel chains. A part of the reason for that, according to Stephen County Development Authority President and CEO Brittany Ivey, was the lack of an up-to-date Hotel Feasibility Study – something that all prospective hospitality brands will want to look at before they even begin to consider locating in a community. 

WNEG News met with Ivey after the presentation of the study results, and she explained that the study was conducted by The Highland Group, a hotel investment consulting firm from Atlanta and the same firm that conducted the 2017 study.

Ivey said one reason that a new study was commissioned was to shift the focus from Big A Road, which is the location target in the 2017 report, to the placement of a hotel in the downtown district.

According to the finalized report, the recent study included research of the lodging market, interviews with local generators of hotel demand, meetings with economic development authorities and analysis of economic data. One conclusion of the report was “visitors travel as far as 17 miles away to Lavonia and Cornelia for an overnight stay due to the lack of a good quality, preferably nationally branded hotel, in Toccoa.”

Ivey said that the study results show there is clearly a need for additional hospitality facilities in the city and county. 

In reporting the results of the study, the Highland Group also noted that “Many interviews also indicate there is potential to increase visitation if there were a premium brand hotel conveniently located nearby.”

The report stated “Estimated room nights from 19 demand sources indicate just over 16,000 room nights were generated from visitation to their facility in Stephens County in 2023.” 

Ivey explained the impact of that finding.

Ivey pointed out that the 19 sources interviewed in the study are only a portion of the sources that exist in the community, indicating that the actual room need in Toccoa/Stephens County is even higher than specified in the report.

In their concluding report, the study showed that Toccoa could support a higher level of hotel than the 2017 study showed, Ivey said 

In contrast, the 2017 study suggested that the community could only support a 72-room, quality brand limited service hotel.

According to the study findings, “… a Premium Brand Limited-Service Hotel has the potential to be successful in Tocoa…and benefit from immediate access to sources of shopping and dining in the downtown area. The proposed hotel would be the newest and best quality lodging option for a wide area and within a short drive of demand generators.”

Ivey explained that a limited service hotel is one that offers continental breakfast, but does not offer a bar or restaurant. 

The study identified three hotel brands that have confirmed that they would“put a flag” in the Toccoa/Stephens County community, meaning they would  give permission for a developer to add a hotel from their line to the community. 

Ivey explained that the Hotel firms would not be the ones seeking to build in Toccoa – that it is developers who make the decision to invest in the community, but those developers must have the permission of the hospitality brand to locate one of their hotels in a community. Ivey said the listed hospitality companies, which include Hilton, IHG and Marriot, are good brands that would benefit the community. The study further identified the specific lines from those three companies that would fit within the Premium Brand Limited Service designation; those include the Hampton Inn & Suites by Hilton, Holiday Inn Express by IHG, and Fairfield Inn & Suites by Marriot. 

Ivey said the community is definitely limiting itself by not having hotel options.

In more specific date from the study, it was determined that Toccoa could support a 90-room Premium brand, limited service hotel at 63% occupancy at a room rate of $160 in 2027, 69% occupancy rate in 2028 with a room rate of $167, and occupancy and room rates increasing each year though 2031, when the report shows a 75% occupancy rate at a room rate of $182 per night. 

Hotel features recommended by the study include meeting space, a fitness center and business center, a pool, and a suggestion that 20-25 percent of available rooms be suites. 

In looking at economic indicators, the study found that “Stephens County experienced modest increases or declines in economic indicators from 2010 through 2020. Positive changes in all economic indicators, however, are forecast through 2030, led by accommodation and food service employment and total retail sales.” 

Ivey said one very positive indicator in the economic data from Toccoa Stephens County was the community’s recovery from COVID. 

Other factors considered in detail in the report include traffic volume on Highway 17, the number of new businesses in Toccoa, the number of yearly special events in downtown Toccoa, the nearby natural attraction such as the Chattahoochee National Forest, Tugaloo River, Lake Toccoa and Lake Hartwell, as well as Toccoa Falls. 

Tourism related to military history was also specifically noted in the report, which named Currahee Military Weekend as the second biggest draw to Toccoa. 

The Planned Unit Development currently under development adjacent to the Highway 17 Bypass near Mize Road, along with two additional planned subdivisions that are in planning stages, were also mentioned as indicators of future economic growth, with the report stating “Efforts to entice increased visitation ito Downtown Toccoa are expected to provide vibrancy and continued appeal. The foreseeable outlook for Toccoa is continued economic growth and increasing demand for lodging.”

Ivey explained that city, county and development officials will now have this study to present to potential developers and investors.

 Ivey did emphasize that the study’s focus on downtown does not mean that the placement of a hotel on Big A Road or another location in the county is not also still a consideration, and she said that they were told by The Highland Group that the community could support both a downtown and Big A Road lodging facility.

WNEG News is unable to provide copies of the studies with this article, as the size of the PDF for the 2024 study is above the limits of what is allowed by our site. Copies of the studies are available from the Stephens County Development Authority. Contact (706) 886-4242.