Colliers South Carolina Hospitality Report: End of 2023 points toward high potential in 2024
January 22, 2024
Commercial Real Estate Research & Forecast Report
Q4 2023 South Carolina Hospitality
Market Highlights
Transactions are expected to increase in 2024 as the lending environment stabilizes and owners reconsider selling their high cash-flowing hotels in order to create other opportunities at this point of the real estate cycle. Investors are prepared to capitalize on situations where debt needs to be refinanced, but to date, any signs of distress or material reductions in pricing are rare.
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Key Takeaways
- A conservative lending environment and higher interest rates helped suppress the pace of new development
- Performance fundamentals improved from Q4 2022
- Hotel transactions remained below average at levels similar to 2020
Summary
Overall, hospitality performance metrics remained stable in the fourth quarter of 2023, with year-over-year improvements in occupancy, ADR and RevPAR. Despite traditionally being the lowest-performing quarter of the year, South Carolina’s hospitality industry had 53.90% occupancy, an ADR of $120.53 and a RevPAR of $65.01. Strong performance, lending environment stabilization and an expected increase in transactions could create additional opportunities in 2024.
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 22.5 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.
