New Hotels Underway in Greenville and Spartanburg Set for Completion in 2025
484 Additional Hotel Rooms on the Horizon
The hospitality market of the Upstate area, which covers Greenville and Spartanburg, is bracing for significant growth. As per recent reports, a staggering 484 new hotel rooms are presently under construction across the locale, signaling an upswing in the local hotel industry. The new extended-stay hotel ECHO Suites in Spartanburg has already provided 24 of these rooms.
The significant majority of the remaining rooms is expected to be ready by the middle or end of 2025. The developments include numerous leading brand names backboning the projects. The market surge has witnessed over a hundred percent increase from the previous year, as hotel rooms coming to the Upstate have substantially doubled.
Flagship Accommodation Developments
- DoubleTree by Hilton Green: Situated at 125 The Parkway, this former office space turned hotel is expected to offer over 140 rooms near the Thornblade Country Club at Interstate 85. The space is slated for operation commencement in the second fiscal quarter of 2025.
- Fairfield by Marriott: Initially approved four years ago, the Spartanburg’s St. John Street location is poised to provide 136 rooms by the second fiscal quarter of 2025.
- WoodSpring Suites Anderson: This extended-stay hotel is looking to contribute an extra 122 rooms to the area. Projected competition is set for the third fiscal quarter of 2025.
Impact of Inflation and High Interests
Despite the promising figures, the industry has seen a slowdown in construction due to high inflation and interest rates. Developers are keeping a close eye on the 2024 presidential election, as there are prospects of the Federal Reserve lowering interest rates later in the year.
Purchase agreements for hotels have been put on hold until January, as potential buyers anticipate a more favorable economy under the succeeding administration. However, the average daily cost for a hotel room in the Upstate area has witnessed a $3 increase from the previous year.
Occupancy Rates Remain Strong
The hospitality market has managed to maintain a slight increase in overall occupancy rates. The Upstate consistently hits a long-term average occupancy rate of about 60%. In the second fiscal quarter of 2024, which includes the late-spring and early-summer months, Greenville-Spartanburg’s hotel occupancy stood at 71%.
Leisure travel is noticeably becoming more dominant in the area, influenced by the recent construction of luxury resorts such as Hotel Hartness and the Grand Bohemian. Conversely, business travel makes up three-quarters of the total hotel stays in the area, pointing out the strong hold business tourism has on the industry in this location.
The new developments and additional rooms expected to deliver in 2025 will undoubtedly further boost the potency of the local hospitality scene. It’s recognition to watch for both locals and visitors alike.
