JHM putting two hotels in one downtown building

Three of the eight hotels in downtown Greenville have come on the market in the past year and a half.

Four more hotels are under construction, and two others are planned.

Even so, HP Rama, chairman and chief executive officer of JHM Hotels, says he isn’t worried about too many hotels going up.

“Downtown Greenville is growing,” Rama said during a June 14 groundbreaking ceremony for his company’s latest downtown project. “And we feel it will continue to grow.”

HP Rama, left, chairman of Greenville-based JHM Hotels, and brother JP Rama, vice chairman, at June 14 groundbreaking for the company’s latest downtown Greenville property: A seven-story building with nearly 250,000 square feet of space that will house two hotel brands, Residence Inn and Spring Hill Suites. Photo by Hannah Moreno

Greenville-based JHM is erecting a seven-story building at the corner of Washington and Spring streets to house a 120-suite Residence Inn and a 166-suite SpringHill Suites.

The two hotels will share 3,100 square feet of meeting space and a 103-space parking garage.

The complex of nearly 250,000 square feet will also include a bar and restaurant, swimming pool, courtyard, and fitness center. It’s scheduled for completion in fall 2018.

After that, JHM plans a 165-room AC Hotel directly across Main Street from the Peace Center.

Rama arrived in the United States from India 48 years ago with $2 in his pocket. Today, his company owns 38 hotels in the United States, including the downtown Hyatt and the Greenville Marriott along Interstate 85.

“We are very proud to be part of Greenville because it has provided us the American dream,” he said during the groundbreaking. “God bless America.”

Rama’s bullish outlook on the downtown Greenville hotel market is supported by the latest available data from STR, a market research firm.

According to STR, total revenue from hotels in the 29601 zip code rose 28.4 percent, to more than $20 million, during the first four months of this year, compared to the same period in 2016.

Hotel occupancy was up 3.4 percent, to more than 77 percent, while revenue per available room rose 0.9 percent, to $132.08.

The average daily room rate dropped 2.5 percent, to $170.60, according to STR.

While supply rose 27.3 percent, demand rose by a greater percentage, 31.7 percent.

Rising revenue

The City of Greenville imposes a 3 percent local accommodations tax on each hotel stay. The total tax revenue collected from downtown hotels grew nearly 19 percent in the three years between 2013 and 2016.