SC hotels see a boost in revenue

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Hotels around South Carolina experienced a revenue boost during the second quarter, according to a market report from Colliers South Carolina. A steady stream of travelers is helping to alleviate the woes of staffing problems and increased fuel prices, the report said.

Columbia hotel occupancy dipped at the end of May but rebounded to 61.92% to end the second quarter, the report said. Average daily rates were $108.59 and revenue per available room was $66.52 at the end of June, both higher than at the same time in 2021.

The city added 144 rooms with the opening of Cambria Hotel, an upscale hotel on Lady Street.

Occupancy in the Greenville-Spartanburg area remained stable at 71% due to a consistent stream of business and leisure travelers to the region. Revenue during the second quarter increased to $72.26 and average daily rates rose to $101.37. The return of group travel is forecast to boost third quarter activity in the region, Colliers said.

Charleston started the busy summer season strong with an increase in occupancy to 79.19% and a daily rate increase to $176.15. Colliers expects Charleston’s daily rates to continue to increase because of a strong overall market for luxury travel nationwide.

Other markets along the coast also had a strong second quarter. Occupancy in the Hilton Head/Beaufort area increased to 75.7%, average daily rates increased to $286.13 and revenue per room rose to $216.60, the highest in the state. The average daily rate in Myrtle Beach increased to $228.61, the same as in 2021. Occupancy along the Grand Strand during the second quarter was 77.6%.

Colliers predicts revenue increases will continue through the rest of the year, which should help hotel owners deal with higher operating costs and inflation and help provide funding of property improvement plans and renovations delayed during the pandemic.