Downtown Columbia could see as many as 8 new hotels

COLUMBIA SC Columbia’s downtown growth and development – stoked by student housing, a resurgent Main Street, and more bars and restaurants than you can count – is reaching a tipping point on the hospitality front.

Occupancy rates for downtown hotels have skyrocketed from 68.4 percent in 2013, to 74.7 percent today. And room rates have also risen, from $122.20 in 2013 to $144.80.

As a result, hoteliers are flooding the Capital City with inquiries and sniffing about for prime locations.

“I’ve had calls from eight who have projects in the pipe and are in some form of due diligence,” Mayor Steve Benjamin said. “Our local economy is strong with business travel complimented by strong tourism travel.”

Hotels and residences are seen to be the next wave of development downtown as the growth of more entertainment and service options lure both new residents and visitors to the city.

Benjamin wouldn’t go into detail about which brand of hotels are interested or where they might locate. But other back his claim about the high level of interest.

Fred Delk, executive director of the Columbia Development Corp., said he is working with “at least five” hoteliers to locate properties in the Vista alone. The public-private organization encourages and guides investment in the arts and entertainment district and other areas of downtown.

“I’ve been talking to a number of hotels who are looking at different sites and running numbers,” he said. “They are trying to figure out where they would fit in in the market. And I’m talking generally downtown.”

Surprisingly, it’s not just Gamecock football and state government that is piquing the interest. Most hotels are sold out by business travelers during the week, hoteliers said, and that is leading to higher rates and occupancy.

David Erbacher, marketing director of the Hyatt Place hotel on Gervias Street, noted that Columbia’s proximity to Charlotte, Charleston, Greenville and even Atlanta make it a good central location for business travel in the central southeast

“So many companies are using Columbia as a starting point,” he said.

Delk agreed.

“Business travel is what’s doing it,” he said. “And it’s a real combination of things, such as the insurance sector and law firms. That’s in addition to the university, government in general and of course the military. And when many of those folks come here, they like what they see and want to return for a weekend.”

Add to that the traditional busy weekends – from football games to festivals, and even the eclipse and the unfortunate flood or hurricane – and you’ve got a robust return for hotels in the right locations.

For instance, Erbacher said, for the uncoming University of South Carolina parents weekend, “We’re charging $650 a night for two nights and people are booking it.”

The most recent trends have been toward “boutique” hotels – smaller hotels that turn their trade through ambiance and intimacy.

For instance, the 107-room Aloft hotel opened earlier this year on Lady Street. Its stock in trade is its modern, chic rooms and trendy, hip lobby bar. It’s more of a destination for a get-away weekend or a staycation than a place for weary salesmen to rest their heads after a long day on the road.

And Hotel Trundle, a 41-room downtown property in two converted, near-100-year-old former retail buildings, is intended to be an intimate destination for corporate and government travelers who want to enjoy Columbia’s newly minted Main Street.

But Bill Ellen, president and CEO for Experience Columbia, SC, the region’s tourism agency, of the Delk said that while boutique hotels are nice and welcome, larger hotels are needed to “grow the city.”

Presenty, the agency can’t book many interested conventions because the city either doesn’t have the necessary rooms, or the convention center’s undersized exhibit hall won’t hold them.

He said a convention center expansion from 25,000 square feet to 100,000 square coupled with a convention center hotel would keep downtown’s momentum going.

“We need a hotel that can accommodate a large block of rooms,” he said. “The hotels work great with us now, but they have so much business they don’t need to offer discounted group rates. We need more rooms available for group blocks.”

This story was originally published September 26, 2017 at 5:15 PM with the headline "Downtown Columbia could see as many as 8 new hotels."