Myrtle Beach Hotels, over the past 25 years, have slowly made the migration almost entirely towards the property management concept. Very few independent, non chain hotels are individually owned as of this writing in August of 2008.
Oceanfront Myrtle Beach Hotels were among the first to become property managed beginning in the last twenty years of the past century. The property management concept, where oceanfront hotels are built selling out each individual condo unit and then managing the concept for the home owners was pioneered in Myrtle Beach by S.M. Johnston. The concept performed well and oceanfront landowners found this a way to raise needed capital to build larger hotels with plush ammenities.
From the 1990's forward, Drake Development scored well with high end property management developments in North Myrtle Beach that included Asheworth, Windy Hill Dunes, North Shore Villas, and the outstanding Barefoot Resort concept. During the Real Estate boom, early in this decade, property owners purchased these high end condos and made great returns as some of these units doubled in value in just a few, short years.
With the onset of the Real Estate Depression that has gripped much of the nation, recent completions in Myrtle Beach including Anderson Ocean Club, Sandy Beach Resort, Oceans I, and the Ocean Blue Hotel have gone largely unsold with area banks holding the notes on many of these condos and some of these developments. Property Management firms are holding the line, however, and vacation rentals are strong on almost all of these new developments. If, as economists predict, we hit a bottom in the next eighteen months, any condo in any of the above developments might prove to be a worthy investment.
Myrtle Beach Hotels with low occupancy tend to be the more traditional, individually owned hotels that have largely disappeared. Even with good occupancy, however, Home owners are not able to meet mortgage demands from the rental income derived from the units that have been converted into Hotel property management concepts.
It is a sure sign that little, if no development will be occuring in the next few years. The fall out from this for the local economy has hurt construction workers, car salesmen, realtors, and all service industry employees. Unfortunately, until the daily rental rate for hotel rooms finds an increase, potential buyers will have little incentive to invest in any Oceanfront Condos unless they are able to find a short sale. Let's hope for a moderate increase in rentals and rental rates so as to help our overall Real Estate Sales. This rate change will require more diversity and a growing pool of new property management firms that are smaller and can compete with one another.
Comments(0)