Hotel Investment on the Rise in the Blue Ridge Mountains

s stronger (on a compounded-annual-growth-rate basis) during the low and shoulder months than in the peak months, indicating a smoothing out of historical seasonality. This trend was slightly skewed by longer lengths of stay during the pandemic years. However, efforts are being made by local municipalities to create lasting year-round appeal both for visitors and residents, including several rezoning initiatives and proposed master plans for cities such as Sky Valley, Georgia.
The influx of new hotel supply in response to market needs is evident as developers address the challenge of meeting the lodging demands of wedding groups, social events, and leisure transient visitors. Short-term rentals and timeshares are popular choices but are not always sufficient to cater to the growing demand for high-quality accommodations. Recognizing this gap, developers have been actively working to fill it in recent years.
Several new hotels have opened their doors, including The Embers in Blowing Rock, NC, a Home2 Suites by Hilton in Boone, NC, and The Horton Hotel in Boone, NC, which underwent expansions in 2025. Additionally, ongoing construction projects include the SpringHill Suites by Marriott in Boone, NC, Courtyard by Marriott in Banner Elk, NC, and Homewood Suites by Hilton in Banner Elk, NC.
Investors are also focusing on upgrading existing properties to offer more upscale facilities and amenities at higher price points, appealing to travelers willing to pay for a premium experience. Properties like the Skyline Lodge in Highlands, NC, Bridge Creek Inn in Clayton, GA, Hotel Sylva in Sylva, NC, Trailborn Highlands in Highlands, NC, and The Lodge at Banner Elk in Banner Elk, NC, have undergone renovations and repositioning to target the upscale/luxury segment of the market.
Furthermore, the renovation and expansion of the Dillard House in Dillard, Georgia, into a full-service resort highlight the market’s shift towards catering to higher-end clientele. With completion scheduled for early 2027, this project demonstrates the ongoing commitment to meeting the evolving needs and expectations of visitors in the Blue Ridge Mountains.
As the market landscape continues to evolve, the outlook for hotel performance varies across submarkets within the Blue Ridge Mountains. While investment is flowing into the region, potential investors should carefully consider the impact of new supply on market dynamics. Conducting a detailed submarket-specific study can provide valuable insights into the investment potential within each area. The ability of the market to absorb the increasing supply, supported by a diversification of demand and longer peak and shoulder seasons, will be key factors in determining the overall success of investments in the region.
The allure of the Blue Ridge Mountains continues to grow, attracting both investors and visitors with its picturesque landscapes and abundant recreational opportunities. To delve deeper into the thriving market dynamics of this region, connecting with industry experts like Courtney Vris, based in the HVS Atlanta office, can provide valuable insights for strategic investments and development opportunities in this flourishing market.