Hospitality is the asset class most central to the Myrtle Beach economy and simultaneously the most operationally complex for investment underwriting, because the market's roughly 58,000 hotel and motel rooms generate RevPAR that peaks at 3x to 4x the winter trough, requiring lenders and investors to underwrite annual cash flow rather than trailing month snapshots. Oceanfront hotels in the core Myrtle Beach strip and in North Myrtle Beach's Cherry Grove and Ocean Drive areas attract the highest revenue per available room and the most competitive buyer interest, with select-service branded flags trading at 8.00% to 8.75% cap rates on stabilized trailing 12-month net operating income. Value-add opportunities exist in the substantial stock of independent and dated motel product along Kings Highway and Ocean Boulevard, where rebranding to a soft brand flag or conversion to extended-stay formats serving the permanent resident population can meaningfully reduce seasonal revenue volatility and improve lender appetite for refinancing.

Hospitality Market Overview: Myrtle Beach 2026

The Myrtle Beach hospitality market in 2026 reflects the metro's broader economic momentum, driven by tourism and hospitality, healthcare, retail trade, construction, education. Key metrics for hospitality investors:

  • Hospitality Vacancy: 38.5%
  • Hospitality Cap Rates: 8.00%-9.75%
  • Metro Rent Growth: 4.1% year-over-year
  • Job Growth: 2.9%
  • Population Growth: 2.8%
  • Median Asking Rent: $1,385

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%-9.75% compare favorably to national averages, reflecting attractive yields for investors seeking current cash flow
  • Rent Growth Trajectory: 4.1% 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 (tourism and hospitality, healthcare, retail trade, construction, education) 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.

Financing a hospitality deal in Myrtle Beach? This guide covers the investment landscape. For current terms, capital sources, and a free quote, go to our Hospitality Financing in Myrtle Beach, SC page or call (310) 708-0690.

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 Market Common, Carolina Forest, North Myrtle Beach, Murrells Inlet and 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: 2.9% job growth and 2.8% population growth create durable demand
  • Market Pricing: Cap rates at 8.00%-9.75% 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: 4.1% rent growth supports improving cash flows over the hold period

Myrtle Beach anchors its economy on the Grand Strand's tourism infrastructure, which draws roughly 20 million visitors annually and supports one of the densest concentrations of hospitality and retail square footage per capita on the East Coast. Tanger Outlets in the north strand, the Broadway at the Beach entertainment complex, and Market Common, a redeveloped former Air Force base that converted into a lifestyle retail and multifamily district, demonstrate how the market has layered permanent resident demand on top of a historically seasonal base. Hospitality underwriting here requires careful attention to average daily rate compression during the shoulder season and the outsized share of extended-stay and condo-hotel product that complicates conventional debt sizing. Conway Medical Center and Grand Strand Medical Center anchor a growing medical office corridor serving a population that skews older and is expanding through sustained migration from the Mid-Atlantic and Midwest, particularly into Carolina Forest and Pawleys Island. That demographic shift has made Horry County one of the faster-growing counties in South Carolina by raw population count, driving multifamily absorption across workforce and attainable price points even as luxury product has entered the pipeline in North Myrtle Beach and Socastee. Industrial demand remains modest relative to major logistics metros, concentrated in last-mile and light distribution serving the contractor and hospitality supply chain, while Horry County's relatively low property tax assessments and South Carolina's Multicounty Industrial Park incentive structure can materially affect stabilized yields on new industrial development.

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.

Related resources:

Trevor Damyan, Commercial Mortgage Broker
Trevor Damyan
Commercial Mortgage Broker, CLS CRE | CA DRE 02244836

Trevor Damyan is a commercial mortgage broker at Commercial Lending Solutions with a background in structured finance at CBRE and Marcus and Millichap Capital Corporation. He specializes in bridge loans, construction financing, SBA programs, DSCR loans, and complex capital structures for investors and developers across all 50 states.