Colliers | South Carolina, the largest full-service commercial real estate firm in South Carolina, released its latest hospitality report, which showed:
Columbia Columbia’s hospitality market continues to perform well with revenue per available room (RevPAR) showing gains across all classes and occupancy rates and average daily rates (ADR) increasing overall. The market continues to attract interest from developers, with 570 rooms under construction and additional starts likely. The Central Business District (CBD) is performing particularly well with the downtown construction pipeline the largest in over a decade. The market’s traditional business, education and government travel are increasingly joined by a nascent leisure travel segment. Transaction volume remains low, mirroring national trends. Charleston While Charleston has been impacted to some extent by increased U.S. international travel demand, the effect has been offset as group occupancies have risen in 2024 to 24 percent of total occupancy. Overall occupancy, ADR and RevPAR have increased slightly with upscale and higher classes performing better than economy and midscale as budget travelers are squeezed by depleted savings. Charleston continues to see construction focused on higher-end offerings, mirroring the market’s overall mix, with 711 rooms currently in progress. Deal volume remains low with just one transaction in Q2, but volume is likely to increase through early 2025 as capital loosens. Greenville-Spartanburg The Greenville-Spartanburg hotel market continues its overall transformation as the leisure travel segment becomes more prominent, though business travel remains the market’s primary driver. Occupancy rose slightly to 71.4 percent, significantly above the market’s long-term average of 60.9 percent. Upscale and upper upscale properties performed best, with RevPAR and ADR both reaching single-month highs in Q2. In all, 484 rooms are under construction while 124 rooms delivered in the Spartanburg submarket this quarter, reflecting a continuing trend of steady construction volume combined with demolition of outdated inventory. Hilton Head/Beaufort The Hilton Head/Beaufort market continues to demonstrate strong performance, with the predominant upscale, upper upscale and luxury segments normalizing after the post-pandemic travel boom. The three top segments each registered slight decreases in RevPAR driven by lower occupancy rates, though the market’s fundamentals remain solid. The market’s core segment of higher-wealth leisure travelers are increasingly looking overseas, and nearby destination markets such as Charleston and Savannah are experiencing similar effects. Construction activity remains limited as financing and land acquisition costs remain high, creating significant barriers to entry. Myrtle Beach Myrtle Beach showed year-over-year improvement, but the state’s largest tourism market by inventory hasn’t fully recovered to the pandemic-era highs of 2021. The market remains focused on middle-class family travel with economy through upper midscale properties showing the greatest gains in occupancy and RevPAR. The market’s unsettled state and mixed performance are reflected in the lack of sales volume and in-progress construction. Recent deliveries have consisted entirely of renovations. | 
