CLARKESVILLE, Ga. — A hotel feasibility study presented to Clarkesville city leaders concludes the city can support a 70-room, upscale hotel in its downtown core, renewing discussion about how to move forward with the former courthouse property the city continues to finance.
The study was presented during Monday’s City Council work session and stems from council’s earlier decision to commission the analysis while reviewing the proposed 2026 budget. City leaders said at the time the study was needed to determine whether a hotel could help generate revenue from the city-owned courthouse site and offset long-term financial obligations tied to the property.
City Manager Keith Dickerson said the study confirms a clear lodging gap in Clarkesville, particularly as nearby hotel options shift or disappear.
“The biggest thing about this is it says — and I don’t even think it really shows the full impact of what’s happening with the Holiday Inn (Apple Mountain Resort) — but to me, it says we need a hotel,” Dickerson said.
According to the study, Clarkesville currently has no traditional hotel properties and only a small bed-and-breakfast, forcing overnight visitors to stay in neighboring communities. Consultants estimate the proposed hotel would capture demand already coming to the area for outdoor recreation, festivals, events and downtown attractions.
Report recommendations
The report recommends a 70-room “soft brand” or boutique-style hotel, noting that size aligns with regional performance benchmarks and national brand standards for small markets. Projected stabilized performance by the end of the decade includes:
- Occupancy: approximately 64%
- Average daily rate: about $215
- Revenue per available room: roughly $137
Leisure travel is expected to account for about 75% of room demand, driven by proximity to the Chattahoochee National Forest, Tallulah Gorge State Park, the Soque River, seasonal festivals and downtown shopping and dining. Commercial, government and group travel are projected to make up the remaining demand.
Total development costs are estimated at approximately $14 million, excluding land. With incentives, consultants project an internal rate of return exceeding 16%, depending on financing structure.
Dickerson said the study now gives the city flexibility in deciding next steps for the courthouse property, which will require refinancing in the coming years.
“We’ve got the land. We’ve got to decide the next steps,” Dickerson said. “We can send this out to groups. We can market this ourselves. We can see if we can find investors.”
Council member Leigh Johnston said she believes Clarkesville can pursue a nationally recognized hotel brand without sacrificing downtown character.
“I feel like there’s a compromise — a good compromise,” Johnston said. “You see in a lot of markets where, even if it’s a national chain, they’ll build something that’s complementary to the surroundings.”
Dickerson said one hotel group, Cobblestone, has shown consistent interest and specializes in small-market developments that allow flexibility in architectural materials and layout.
Next steps
Mayor Franklin Brown said the city should proceed deliberately and announced plans to form a committee to help guide the process. The committee will be led by the city’s Director of Economic Development, Yvonne Marinelli, and include two council members and two Planning and Zoning Board members.
City leaders emphasized the feasibility study does not commit Clarkesville to building a hotel but provides data to guide decisions about the courthouse site and future economic development.
“It tells me that we need a hotel here,” Dickerson said. “Now it’s about deciding how we do that.”
