Hospitality Market Report | 2014 Charleston Commercial Market Forecast

www.CharlestonCommercialMarketForecast.com

Commercial Real Estate Market Forecast

October 8, 2014 | Daniel Island Club


DEMAND POPULATION GROWTH CORPORATE RATES OCCUPANCY INTERNET NON-STOP FLIGHTS CUISINE TOUR OPERATORS CONVENTION AND VISITORS BUREAU SPOLETO NEW HOTELS DEMAND POPULATION ROOM RATES INTERNET PUBLIC RELATIONS SOUTHERN CHARM BEACH HISTORIC DISTRICT NORTH CHARLESTON SUMMERVILLE DEMAND POPULATION GROWTH RENTAL RATES VACANCY INTERNET MT. PLEASANT CULTURE DEMAND POPULATION GROWTH CORPORATE RATES OCCUPANCY INTERNET NON-STOP FLIGHTS CUISINE TOUR OPERATORS CONVENTION AND VISITORS BUREAU SPOLETO NEW HOTELS DEMAND POPULATION ROOM RATES INTERNET PUBLIC RELATIONS SOUTHERN CHARM BEACH HISTORIC DISTRICT NORTH CHARLESTON SUMMERVILLE DEMAND POPULATION GROWTH RENTAL RATES VACANCY INTERNET MT. PLEASANT CULTURE POPULATION GROWTH CORPORATE RATES OCCUPANCY INTERNET NON-STOP FLIGHTS CUISINE TOUR OPERATORS CONVENTION AND VISITORS BUREAU SPOLETO NEW HOTELS DEMAND POPULATION ROOM RATES INTERNET PUBLIC RELATIONS SOUTHERN CHARM BEACH HISTORIC DISTRICT NORTH CHARLESTON SUMMERVILLE DEMAND POPULATION GROWTH RENTAL RATES VACANCY INTERNET MT. PLEASANT CULTURE DEMAND POPULATION GROWTH CORPORATE RATES OCCUPANCY INTERNET NON-STOP FLIGHTS CUISINE TOUR OPERATORS CONVENTION AND VISITORS BUREAU SPOLETO NEW HOTELS DEMAND POPULATION ROOM RATES INTERNET PUBLIC RELATIONS SOUTHERN CHARM BEACH HISTORIC DISTRICT NORTH CHARLESTON SUMMERVILLE DEMAND POPULATION GROWTH RENTAL RATES VACANCY INTERNET MT. PLEASANT CULTURE DEMAND POPULATION GROWTH CORPORATE RATES OCCUPANCY INTERNET NON-STOP FLIGHTS CUISINE TOUR OPERATORS CONVENTION AND VISITORS BUREAU SPOLETO NEW HOTELS DEMAND POPULATION ROOM RATES INTERNET PUBLIC

HOSPITALITYREPORT


Hospitality & Tourism Update

Michael TallPresident & COO

[email protected](843) 422.3851

mailto:[email protected]


Numerous Mentions in Highly Acclaimed Publications


YOY Occupancy Growth

2011 2012 2013 (YTD) 2014

Charleston 0.014 0.008 0.021 0.042

United States 0.044 0.025 0.015 0.034

0.3%

0.8%

1.3%

1.8%

2.3%

2.8%

3.3%

3.8%

4.3%

4.8%


YOY ADR Growth

2011 2012 2013 (YTD) 2014

Charleston 0.034 0.06 0.041 0.062

United States 0.037 0.042 0.039 0.043

0.5%

1.5%

2.5%

3.5%

4.5%

5.5%

6.5%


Year-Over-Year RevPAR Growth

2011 2012 2013 (YTD) 2014

Charleston 0.05 0.074 0.06 0.104

United States 0.082 0.068 0.054 0.078

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%


Average Tourist Expenditures

Accommoda-tions$103

Dining/Food$58

Local Transporta-

tion$38

Tours/Attrac-tions$37

Shopping$46

Other$18

$227 Per Visitor Per Day


New Supply Entering the Market


New Inventory - PeninsulaExpected Completion 2015Calhoun Hotel – 50 Rooms

Grand Bohemian – 50 Rooms

Hyatt House – 113 Rooms

Hyatt Place – 191 Rooms

King Hotel – 54 Rooms

Restoration on King Hotel – 36 Rooms

The Spectator Hotel – 41 Rooms

Expected Completion 2016Hotel Dewberry – 155 Rooms

Hotel (Marion Square) – 185 Rooms

Hotel (Meeting/Reid Streets) – 138 Rooms

Expected Completion 2017Aloft/Element Hotel - 174


New Inventory - Charleston AreaExpected Completion 2014Hilton Garden Inn – 130

Marriott Courtyard – 93 Rooms

Expected Completion 2015Marriott Residence Inn – TBA

Expected Completion 2016The Dorchester Hotel – 66 Rooms

Hotel Use (TBA)Hampton Inn – Crosstown Area

Hotel at SC Aquarium – Calhoun Street

Holiday Inn Express – IOP Connector

Hotel Use - Patriot’s Point

Hotel Use - Calhoun & Meeting


Forecast

2014 2015Charleston PeninsulaOccupancy 80.5% 80.1%ADR $188.72 $194.17

Charleston CountyOccupancy 74.5% 74.7%ADR $136.66 $143.49


Michael TallPresident & COO

[email protected](843) 422.3851

mailto:[email protected]