New oceanfront hotel is planned for Myrtle Beach. Developers to give city $1M

A new 400-unit oceanfront hotel in its own planned unit development (PUD) could be coming to Myrtle Beach near 27th Avenue North and North Ocean Boulevard.

In exchange for the proposed PUD, the developer would give the city more than $1 million.

Plans for a new Drury Hotel, parking garage and pedestrian corridor passed the first round of Myrtle Beach City Council approval in a meeting Tuesday.

To accommodate the new hotel, Drury Development Corp. will purchase one property from the city, and four properties will be removed from the 26th Avenue North PUD to create a new 2.31-acre 27th Avenue North Hotel PUD. An additional five parcels separated from the existing 26th Avenue North PUD will be recategorized as a mixed-use district.

For the 0.71-acre city property, which Horry County land records list as $240,120 in taxable value and $609,000 in market value, the developer is set to pay $308,040. That comes out to $10 for every square foot. Drury Development Corp. also agreed to pay up to $10,000 in closing costs.

In exchange for creating a new PUD where the hotel can establish its own zoning code, Myrtle Beach will get “substantial public improvements or public benefits,” according to the city.

“We’re giving the developer a couple of things that he or she may not have gotten under zoning, and in return, the city gets some public benefits that help the overall city function and usability,” Mayor Mark Kruea told The Sun News.

If approved, Drury Development Corp. would dedicate $1,225,000 to the city, including delivering two properties at the convergence of Eighth Avenue North, Broadway Street, Highway 501 and Oak Street in exchange for two 20-foot-wide alleyways.

The company would spend $425,000 on Ocean Boulevard improvements; $300,000 on southern alleyway improvements and sidewalks around the hotel; $250,000 to the pedestrian walkway and micropark; $100,000 to northern alleyway improvements; $80,000 to public parking and $70,000 to transition and vehicle queuing.

Parcels in the PUD could be used for a variety of uses beyond hotel accommodations and parking facilities, including waterparks, restaurants, bars, retails shops and more.

“All PUDs are special in one way or another,” Kruea said. “The city allows some zoning considerations to the developer, and in return, the city – the public – gets some special benefits, too.”

The proposed project has a 10-year development timeline. A Drury representative told City Council the company has a set number of projects it develops across the country every year and hopes to work on a Myrtle Beach location next year. However, the project could be delayed.

After passing a first Council reading, the two relevant ordinances still need approval on a second reading before the project can move forward.

This story was originally published April 14, 2026 at 12:58 PM.