News Summary
The hospitality industry in South Carolina has experienced significant growth in the early part of 2023 despite a decrease in available hotel rooms. Key urban areas, including Columbia and Charleston, have seen notable increases in occupancy rates and revenue per available room (RevPAR). Factors like a resurgence in corporate travel and ongoing projects are driving this upward trend. While challenges remain, the outlook for South Carolina’s tourism sector appears promising as stakeholders adapt to evolving market conditions.
South Carolina – The hospitality industry in South Carolina has shown remarkable growth in the first quarter of 2023, even as the number of available hotel rooms has decreased. A report from Colliers South Carolina indicates that the sector has outperformed its performance in the same timeframe last year, highlighting a positive trend amidst various market challenges.
The overall occupancy rate for the state during the first quarter of 2023 was recorded at 66.5%, with significant increases noted in key urban areas like Columbia and Charleston. Additionally, revenue generated per available room, known as RevPAR, has also increased, reflecting a recovery in sectors of travel that had been impacted during earlier periods. Specifically, RevPAR statewide reached $85.54, while the average daily rate (ADR) per room stood at $128.57.
South Carolina’s hospitality property owners and investors are currently navigating a challenging market influenced by a tightened lending environment. This has resulted in adjustments in underwriting practices from buyers and a decrease in transaction volumes among sellers. Despite these challenges, hotel performance is benefitting from a resurgence in corporate travel, team-building meetings, and an increase in group travel, which are contributing to optimistic projections for the industry.
In substantial urban areas, occupancy and revenue metrics demonstrate significant upward trends. For instance, the city of Columbia has seen its occupancy rate rise to 70.1%, up from 66.1% in the first quarter of 2022. Columbia’s RevPAR was $79.54, with an ADR of $113.53. A notable factor in Columbia’s economic growth is the ongoing “Carolina Crossroads” project, which has created a demand for temporary housing, positively impacting midscale hotels in the city.
In the Greenville-Spartanburg area, there has also been a rebound in business travel, resulting in a stable occupancy rate of 71.5%. The RevPAR for this region has increased to $81.83, while the average daily rate is $114.53. This growth signals a recovery trend spurred by business activities picking up in the area.
Charleston has emerged as a standout performer, with metrics that not only exceed those from Q1 2022 but also show improvement from Q4 2022. The area recorded a RevPAR of $139.24, an ADR of $176.50, and an occupancy rate of 78.9%. This robust performance underscores Charleston’s position as a key player in the state’s hospitality market.
Recent sales within South Carolina’s hospitality sector reflect ongoing investor interest. Notable transactions include the sale of a 123-room Courtyard in Charleston for $8.3 million, a 110-room Hampton by Hilton in Columbia for $7.5 million, and a Red Roof Inn in Greenville for $4.1 million. While analysts expect Charleston’s market to maintain strength in the near term, there are indications that it may plateau during the spring and summer months.
As South Carolina’s hospitality industry continues to evolve, stakeholders remain focused on navigating challenges while leveraging opportunities. With a mixture of robust travel activity and strategic developments underway, the outlook for the state’s tourism sector appears promising for the remainder of 2023.
Deeper Dive: News & Info About This Topic
- Columbia Business Report: South Carolina’s Hospitality Industry Sees a Strong Start to 2023
- Wikipedia: Hospitality Industry
- Business Insider: Price Gouging Complaints Surge
- Google Search: South Carolina hospitality industry
- Skift: Roadside Hotels Expect Boom
- Google Scholar: South Carolina hospitality industry
- Upgraded Points: Airbnb vs Hotel Cost in US Cities
- Encyclopedia Britannica: Hotel
- Condé Nast Traveller: The Dunlin, Auberge Resorts Collection
- Google News: Hotel Industry News
Author: STAFF HERE FLORENCE WRITER
FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
