Columbia, South Carolina's hospitality asset class has seen significant improvement in most major categories, the latest report from Colliers finds.
Overall occupancy in the state's capital ended 2024 at 71.2 percent, up from the 58.3 percent in the previous year. Revenue per available Room (RevPAR) spiked to $84.95, from $63.06, while daily rates reached $119.26. The demand caused by Hurricane Helene helped drive the performance, while some can be attributed to developments in Scout Motors.
"Manufacturing project growth centered on Scout Motors continues to bolster demand from construction employees in economy and midscale extended stay spaces," Colliers wrote.
The only downside that Colliers noted was that transactions remained low, as interest rates remained elevated.
Greenville-Spartanburg was another South Carolina market that saw notable hospitality demand as a result of Hurricane Helene. Occupancy ticked up to 72.6 percent, from 68.70 percent, RevPAR rose to $92.97 from $74.80, while average daily rates increased to $131.69 compared with $117.57.
"While Helene’s effects created an immediate impact, the market continues to build on a solid and growing foundation driven by a mix of business and leisure travel during a boom period," Colliers wrote.
"The construction pipeline is growing to match demand, replacing outdated product and meeting demand generated by residential growth concentrated in Greer and Greater Spartanburg."
Myrtle Beach enjoyed modest improvements, as the area transitions to a "year-round residency destination," with inflation putting pressure on tourism. Nevertheless, occupancy improved by two percent to 42.50 percent, RevPar was $38.23 compared with $35.47, and ADR went from $87.51 to $90.02.
Meanwhile, some South Carolina hospitality markets lagged. For example, in Hilton Head/ Beaufort, RevPAR dipped to $80.35, from $88.46 and average daily rates went from $182.10 to $154.97. Although the market did see a slight improvement in occupancy, at 51.80 percent compared with 48.60 percent.
"Throughout 2024, the Hilton Head/Beaufort market suffered from an overseas travel substitution effect behind a strong dollar as well as tightening consumer discretionary expenditures," Colliers explained.
In addition, the CRE firm warned that the pain might continue in Hilton Head/Beaufort, noting that landlords could sell properties as opposed to renovating amid consumer trend uncertainties.
Colliers predicts that supply will meet the demand for hospitality for the Greenville-Spartanburg market.