NEWS - CHARLESTON BUSINESS
New Charleston Moxy Hotel anticipates industry rebound
Charleston, SC – April 8, 2021
Charleston will soon be one of the more than 60 locations worldwide where guests can check in at a Moxy Hotel, a brand of Marriott International.
Canyon Partners Real Estate LLC, headquartered in Los Angeles, has provided a $25.2 million loan toward the immediate construction of a seven-story select-service Moxy Hotel to be built at 547 Meeting St. in Charleston.
This $42 million project is a joint venture between Opterra Capital and hotel development company The Montford Group, which has closed its first round of investment.
“Given the environment that we’re in with the pandemic, and hospitality is probably one of the major sectors that got hit the most, new construction in hospitality was almost a no-go for anybody,” said Sunju Patel, CEO of The Montford Group. “And for that reason, we felt really special and excited that Canyon Partners trusted us with this project and partnered with us.”
The hotel is scheduled to be ready in late 2022. It will include 131 guest rooms, a rooftop bar and restaurant that overlooks the Cooper River, first-floor café, large meeting space, and lobby bar and lounge.
Though the pandemic delayed the project by three months, and slowed-down construction in the region had led to higher interest rates, Patel said powering through was worth it.
“We felt like by the time we open, the market would have rebounded or be on the verge of recovery, so we felt pretty confident that the little more on interest that we’re paying would be recovered right upon refinancing,” Patel said.
According to a statement from Canyon Partners, its investment is to be used to serve the growing need for lifestyle hospitality in the rapidly evolving submarket of the Upper Peninsula District, especially as leisure and business travel is expected to recover in the coming months.
“While we are seeing significant signs of healing in the Charleston hospitality space today, we believe a late 2022 opening will be well-timed with a more holistic emergence from the pandemic and substantial pent-up demand for hospitality in Charleston,” the statement said.
Once the hotel opens, guests can expect an approachable and sociable experience, Patel said. Upon check-in, which is located at the hotel bar, guests receive a free drink. Rooms will average 225 square feet, and rates will go from $200-$300.
“A lot of people that were once taking international trips will now take trips to cities like Charleston and Savannah, so I feel like we’re probably going to have one of our best years in 2022 and ’23,” Patel said.
Reach Alexandria Ng at 843-849-3124.