National Players Enter Downtown Atlanta STR Market
Updated: Mar 9
The big boys are coming to Downtown Atlanta. As reported by the Atlanta Business Chronicle, Sonder Holdings Inc., a San Francisco based hospitality company, is converting the historic Grant Building, a 125,000 square-foot building on Grant Street, to short-term rental accommodations. The Grant Building project will follow Sonder's business model offering the comforts of short-term rentals at prices averaging 15 percent less than hotels. Sonder's properties operate as licensed hotels, thus avoiding the restrictions imposed by a short-term rental license.
The Grant Building will be Sonder's fourth Atlanta offering. Since January 2020, Sonder has opened three hotel-licensed short-term rental properties starting with One Baltimore and 549 Peachtree, both near Emory University Hospital Midtown. Midtown South, a 120 unit apartment building, followed in January 2022.
Kasa Living, Inc, a recent start-up following a business model similar to Sonder, has filed a concept review plan with the City to convert 65 loft units at 50 Peachtree Street to short-term rentals, the Chronicle reports. The project, also in a historic building, is steps away from the Grant Building.
In addition to pressuring downtown hotels, Sonder and Kasa's acquisitions will bring competition to nearby Peachtree Towers Condominiums and Landmark Condominium, condominium buildings that allow their owners to operate short-term rentals.