Dive Brief:
- Atlanta Hartsfield-Jackson International Airport officials have announced plans to build three hotels worth approximately $350 million next to the airport's domestic terminal, according to the Atlanta Journal-Constitution.
- The hotels are part of a 26-acre, mixed-use "airport city" development next to Hartsfield-Jackson that developer Majestic Carter and airport officials said they hope will increase revenue for the airport and provide more services and benefits to travelers.
- The development will be carried out as a public-private partnership, and Majestic Carter — a joint venture between Majestic Realty Co., real estate company Carter and GPM Investments — will maintain the property under a 50-year lease with Hartsfield-Jackson. The design process is currently underway, and crews are expected to start construction in early 2018.
Dive Insight:
This expansion is in addition to the $6 billion, 20-year overhaul currently underway at Hartsfield-Jackson, the busiest passenger airport in the world with 101.5 million travelers passing through its terminals each year. The renovation includes construction of a $393 million terminal, a $943 million runway, canopies over traffic lanes and sidewalks and a complete redesign of the airport's interior.
The mammoth Atlanta airport has been a long-time business catalyst for the region, and the Atlanta Business Chronicle recently reported that UPS could be building one of its "mega" hubs near downtown. While the reported development is closer to Fulton County Airport, there is little doubt that UPS would also utilize the facilities at Hartsfield-Jackson. UPS has two other major shipping centers in Louisville, KY, and Ontario, CA, but the potential Atlanta project is seen as a response to increased e-commerce demands.
Several airports across the U.S. are undergoing or gearing up for massive renovation, due largely to the fact that passenger traffic has increased to the point that current facilities can no longer meet their needs. The San Francisco airport is getting a $2.4 billion facelift with its eight-year Terminal 1 replacement and renovation. Salt Lake City also has a $2.6 billion airport expansion in progress, with revenue bonds, airline passenger taxes and rental car taxes funding the project. And in New York, LaGuardia Airport is replacing its outdated terminal through a public-private partnership with Skanska-led LaGuardia Gateway Partners and the Port Authority of New York and New Jersey.