City Owned Myrtle Beach Hotel may still close

David Hucks

The city taxpayer funded Myrtle Beach Hotel known as the Myrtle Beach Convention Center Hotel may close within 60 days, if negotiations between the Sheraton and the city stall.

This Myrtle Beach hotel is managed by the Convention Center Hotel Board of Directors for the city. The Convention Center Hotel Board is a closely-held corporation that oversees the city’s ownership of the Sheraton Myrtle Beach Convention Center Hotel and the management of the property according the the City of Myrtle Beach website.

The downtown Sheraton hotel’s closure was imminent, but the city government stepped in and unanimously voted to prolong the contract negotiations between the Myrtle Beach Convention Center Hotel Corporation and the hotel for an additional 60 days at last week’s city council meeting.

Myrtle Beach Hotel – City owned Convention Center

The Sheraton hotel chain is considering removing the corporate flag outside the hotel. The city owned Myrtle Beach Hotel has been a perrenial money loser since the city founded it decades ago.

Many government-sponsored businesses like this Myrtle Beach Hotel often experience failure competing in the private sector.

“We have not quite come to terms with the renegotiated franchise agreement and we would like a little bit more time to work out a few more points,” said Myrtle Beach’s Chief Financial Officer Michelle Shumpert.

Shumpert stated that in the absence of the Sheraton affiliation and agreement, the Myrtle Beach hotel will cease its operations.

Shumpert declared that without the Sheraton affiliation and agreement, the hotel will halt its operations.

Said Myrtle Beach City “Executive Services” Business owner Ann Dunham, “Taxpayers should not be responsible for bringing in tourists and paying for beds for them. The city has had a goal of putting heads on beds for too long. The city competes with private businesses. Let’s have free parking, nice beach front locations with restrooms and changing rooms. Lower debt and lower tax mills will bring in private investments. I say sell the hotel and consider selling the convention center. Didn’t the hotel operator offer to buy them both some time back?”

“The parties are still in negotiation over a few details of the franchise agreement and would like an extension of the existing agreement to allow additional time to come to an agreement,” the motion extending contract negotiations said.

The current members of the Convention Center Hotel Board of Directors in the City of Myrtle Beach, as stated on the official website, are as follows:

Louis LaBruce (term expires 07-25-27)

Adam Johnson (term expires 07-25-27)

Frank DuRant (term expires 07-25-27)

Matthew D’Antoni (term expires 07-25-26)

Vacant (term expires 07-25-25)

Yvette Jefferson (term expires 07-25-26)

George C. DuRant (term expires 07-25-26)

Staff Liaison: Nicki Stoddard

Shumpert hopes to work something out with the Sheraton Chain by November.

During a recent City Council meeting, council members were given a proposed ordinance that would have permitted the city to issue and sell $81,000,000 worth of aggregate principal amount limited obligation bonds, as stated in the meeting agenda.

The city is currently facing several simultaneous challenges. These challenges involve a $60 million investment needed for enhancing the Pelicans Baseball Stadium, the potential loss of the Carolina Country Music Festival to a different state’s venue, The Myrtle Beach Hotel – Convention Center, and the taxpayer-funded rehabilitation of the CCU Theatre, which requires $30 million.

Myrtle Beach holds the record for the largest amount of municipal debt among all cities in Horry County, with a massive sum of $209,221,369.00 (209 million dollars).

According to city government sources, MyrtleBeachSC News has been informed that the city’s debt currently stands at 80% of its total debt ceiling. The city has little room to no room to borrow additional monies.

For a comparison, the City of North Myrtle Beach debt is carrying $595 thousand dollars in total debt.

According to Ordinance 57-2024, the city intends to secure $81 million in borrowed funds. These funds will be utilized for covering the expenses of renovating the Myrtle Beach Convention Center and enhancing the downtown Arts and Innovation District. Additionally, the borrowed funds will be used to refinance the city’s existing debts.

City officials state that some of those funds would be used to improve the Convention Center Myrtle Beach Hotel.

Ordinance 57-2024 did not progress after council member Gregg Smith proposed it for first reading at the city council meeting on September 10th, as there was no second from any other council member.

The council is aware that the City of Myrtle Beach has attained its maximum borrowing limit.

I guess we need to bring this up in another workshop so that it’s better understood,” Mayor Brenda Bethune of Myrtle Beach remarked.

Property records indicate that the convention center adjacent to the Myrtle Beach hotel is also owned by the city. The John T. Rhodes Myrtle Beach Sports Center, situated in that area, experiences significantly more success and aligns more closely with the appropriate function that a city government should financially support.