Colliers Report: Hospitality outperformed year-over-year, had strong start to 2023
June 14, 2023
Commercial Real Estate Research & Forecast Report
Q1 2023 South Carolina Hotel
Market Highlights
Investors and property owners encountered a unique market situation as they navigated the current lending environment. RevPAR, ADR and occupancy increased across the state, indicating a robust environment. Q1 2023 outperformed Q1 2022 and Q4 2022 in all metrics, including rooms under construction. The supply of new rooms was minimal, however, 652 rooms should deliver by the end of 2023.
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Key Takeaways
- Hotel fundamentals improved over the last year
- Supply growth remained stable
- Occupancy, RevPAR and ADR increased
- Group booking compensated for slower corporate comeback
Summary
Buyers realized the high cost of debt and adjusted their underwriting accordingly while sellers did not, resulting in a softer transaction volume for Q1. Corporate travel began to recover from the need of team building meetings and in-person regrouping as group travel increased due to short work weeks and remote working.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 62 licensed real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina with a portfolio of over 18 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold the most professional designations of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
