The hospitality market in Myrtle Beach serves regional business travel, leisure tourism, and convention demand. Extended-stay and select-service hotels offer the most attractive risk-adjusted returns in the current cycle.

Hospitality Market Overview: Myrtle Beach 2026

The Myrtle Beach hospitality market in 2026 reflects the metro's broader economic momentum, driven by government, healthcare, education, manufacturing, logistics. Key metrics for hospitality investors:

  • Hospitality Vacancy: 24.0%
  • Hospitality Cap Rates: 8.00%-9.50%
  • Metro Rent Growth: 3.2% year-over-year
  • Job Growth: 1.6%
  • Population Growth: 0.9%
  • Median Asking Rent: $1,450

Hospitality Subtypes in Myrtle Beach

The Myrtle Beach hospitality market encompasses a range of property subtypes, each with distinct risk-return profiles and financing requirements:

  • Full-Service Hotels
  • Limited-Service / Select-Service
  • Boutique & Independent Hotels
  • Extended Stay
  • Resorts & Spas
  • Entertainment Venues
  • Conference & Event Centers
  • Specialty Hospitality (Aquariums, TopGolf, etc.)

Each subtype has different lender appetite, underwriting criteria, and optimal financing structures. Understanding which subtypes perform best in Myrtle Beach's specific market conditions is critical for investment success.

Key Investment Metrics

Hospitality investors evaluating Myrtle Beach should focus on these key performance indicators:

  • Cap Rate Spread: Myrtle Beach hospitality cap rates at 8.00%-9.50% compare favorably to national averages, reflecting attractive yields for investors seeking current cash flow
  • Rent Growth Trajectory: 3.2% annual rent growth supports both value-add and core investment strategies
  • Supply Pipeline: New hospitality construction activity should be evaluated relative to the market's absorption capacity
  • Tenant Quality: The Myrtle Beach metro's major employment sectors — government, healthcare, education, manufacturing, logistics — drive hospitality tenant demand and creditworthiness

Financing Options for Hospitality in Myrtle Beach

Hospitality properties in Myrtle Beach can be financed through multiple capital sources, each with distinct advantages:

  • Bank Permanent Loans
  • CMBS
  • SBA 504 / 7(a)
  • Bridge Loans
  • Construction & Renovation
  • Mezzanine & Preferred Equity

The optimal financing structure depends on your business plan (core hold, value-add, or development), the property's current condition and occupancy, and your desired leverage and hold period. In the Myrtle Beach market, lenders are most competitive for well-located assets with strong fundamentals and experienced sponsors.

Top Submarkets for Hospitality Investment

The Myrtle Beach metro features several distinct submarkets for hospitality investment, each with unique characteristics:

  • Downtown Myrtle Beach — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Surfside Beach — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Murrells Inlet — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Pawleys Island — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Conway — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Socastee — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • North Myrtle Beach — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Loris — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Horry County — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Carolina Forest — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Market Common — offering distinct opportunities within the broader Myrtle Beach hospitality market
  • Grand Strand — offering distinct opportunities within the broader Myrtle Beach hospitality market

The most active investment corridors for hospitality in Myrtle Beach include Downtown Myrtle Beach, Surfside Beach, Murrells Inlet, Pawleys Island. Submarket selection significantly impacts both returns and financing terms, as lenders evaluate location-specific metrics in their underwriting.

Investment Thesis: Hospitality in Myrtle Beach

The investment case for hospitality in Myrtle Beach rests on several structural factors:

  • Economic Fundamentals: 1.6% job growth and 0.9% population growth create durable demand
  • Market Pricing: Cap rates at 8.00%-9.50% offer attractive entry points relative to coastal gateway markets
  • Financing Environment: The Myrtle Beach market's depth and lender familiarity support competitive borrowing costs
  • Growth Potential: 3.2% rent growth supports improving cash flows over the hold period

Myrtle Beach is one of the fastest-growing metros on the Eastern Seaboard, driven by retiree migration, tourism infrastructure, and an expanding year-round residential base. The market offers compelling retail and hospitality investment opportunities alongside strong multifamily demand from new permanent residents.

CLS CRE — Hospitality Financing in Myrtle Beach

CLS CRE specializes in hospitality financing throughout the Myrtle Beach metropolitan area. With access to 1,000+ lenders, we match your specific hospitality investment with the right capital source at the most competitive terms available.

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