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Market Report

Carolinas Hospitality Investment Forecast

2022 Outlook

Tourism Thrives Through the Carolinas' Coastline,
Attracting Buyers to the Region

South Carolina leads the way to recovery. Improving vaccination rates coupled with the release of pent-up travel demand stimulated a surge in leisure trips over the past year. Room demand in the region increased as a result, lifting occupancy and revenue metrics near pre-pandemic levels entering this year. Numerous recreational activities and beaches attracted many visitors to Myrtle Beach and Charleston. The boost in overnight stays elevated South Carolina's ADR and RevPAR metrics above 2019 figures as 2022 began. Fundamentals are improving in North Carolina as well, albeit at a slower pace. The lack of business travel in Raleigh and Charlotte is hindering occupancy rates here. However, as more firms commit to a full return to offices, business travel will likely normalize, boding well for weekday property performance in these markets moving forward. Even though roughly 8,200 rooms will deliver throughout the Carolinas this year, hotel demand is slated to outpace supply, allowing regionwide RevPAR to exceed pre-pandemic levels in 2022.
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