United States -  Columbia

Overview:

As the capital of South Carolina, Columbia benefits from a diverse balance of industries within the private and public sectors. The state government is a major employer in the area, and the federal government has a strong influence on the market given the presence of Fort Jackson. Fort Jackson continues to be a steady source of demand, with over 100,000 visitors coming to the area annually to attend basic training graduation events. In addition, the new $106-million Darla Moore School of Business at the University of South Carolina (USC) is expected to increase the number of international students and travelers to the area.

The 130-unit Hyatt Place Downtown Columbia Vista opened in March 2015; other hotels, such as the Courtyard by Marriott Downtown at USC, have recently undergone significant renovations. Officials at the Columbia Metropolitan Convention Center (CMCC) report that the entrance of new supply in the downtown area will allow the CMCC the ability to attract larger conventions. In addition to the growth occurring at USC in Downtown Columbia, the 2014 opening of Palmetto Health’s newest hospital, Baptist Parkridge, should support future occupancy and rate growth in the market. As new supply enters the market, a number of older, exterior-corridor properties are exiting the market. Hotels in Columbia are forecast to realize increases in occupancy, average rate, and RevPAR given the improving economy, stability of the government and military entities in the market, growth occurring at USC, an expanding healthcare sector, and other expansions at companies located in the area. This should translate into healthy value gains for area hotels, particularly through 2017.

The Courtyard by Marriott Columbia Downtown at USC transacted for $14,125,000 (nearly $75,000 per key) in 2014, which is the highest per-key sale in recent years for the area. Following the sale, new ownership spent an estimated $5 million on renovations.

* The HVI is an index, a statistical concept reflecting a measure of the difference in the magnitude of a group of related variables compared with a base period. As such, it is a measure of broad market trends, rather than a conclusion as to the specific value of any asset, and cannot be applied to an individual asset. A good comparison is the Consumer Price Index. While this index provides a reliable measure of the overall rate of inflation in a region, it does not indicate how the price of milk has changed at your grocery store. So how can the HVI be of use to an individual investor? Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent big picture data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Valuation Trends and Predictions:

Columbia United States
Previous Year +2% (25 of 71) +1% (49 of 71)
Growth in 2017 +2% (17 of 71) +2% (36 of 71)
Growth in next 3 years +14% (11 of 71) +10% (36 of 71)

Change In Value For Market:

Columbia RevPAR % Change

For more information, please contact:

Heidi Nielsen
hnielsen@hvs.com
  • +1 843 847-1986 (w)