New Hotels Popping Up in Greenville and Spartanburg’s Hospitality Market in 2025

South Carolina’s Upstate area, particularly Greenville and Spartanburg, is expected to experience significant growth in their hospitality sectors with 484 new hotel rooms under construction. These hotel rooms are expected to be ready by mid to late 2025, boosting the supply in the region’s hospitality market substantially and providing more accommodation options for visitors.

The Incoming Hotels and Their Offers

Some of the new accommodations set to open their doors in 2025 include the DoubleTree by Hilton Green and the Fairfield by Marriott. The former, projected to deliver more than 140 rooms in the second quarter, is an ambitious office-to-hotel conversion located at 125 The Parkway. Its proximity to the Thornblade Country Club and Interstate 85 enhances its appeal to visitors seeking convenience. On the other hand, the Fairfield by Marriott in Spartanburg’s St. John Street is set to provide 136 rooms, augmenting the available accommodations further.

In addition, the WoodSpring Suites Anderson, expected to be ready by the third quarter, will be offering 122 rooms. This extended-stay hotel facility will cater to longer-term visitors looking for a comfortable and well-equipped place to stay.

Impediments and Delays

Despite the growth, the construction of these new accomodations has been financially impacted by inflation and high interest rates. Concerned about potential changes in the country’s economic climate following the 2024 presidential election, developers are waiting on the future steps of the Federal Reserve in terms of interest rates. Some purchase agreements for hotels are also on hold until January, as buyers await a potentially more favorable economy under the next presidential administration.

Positive Market Performance

Despite the challenges, the Upstate hospitality market has experienced a slight increase in overall occupancy rates. The average daily cost for a hotel room has increased by $3 from last year, while the occupancy rate for the second fiscal quarter of 2024 registered at 71%, surpassing the region’s long-term occupancy average rate of 60%. By extending the existing trend into the future, the addition of the new rooms in 2025 will undoubtedly contribute to vibrant hospitality market growth.

The thriving local travel and tourism industry is a significant driver of this development. Despite leisure travel becoming more popular, business travel still accounts for three-quarters of total hotel stays in the area, offering a consistent demand for hotel rooms in the region.

Source: HERE News Network