Hilton Head Island, January 28, 2026
A significant redevelopment project is transforming the Atrium Building on Hilton Head Island into a modern event venue, driven by the SERG Restaurant Group. This project not only modernizes aging retail space but also signifies economic evolution, impacting established local eateries like DryDock Seafood & Spirits and Red Stripes Caribbean Cuisine and Lounge. With plans for multiple event spaces and new takeout services, this initiative embodies the island’s entrepreneurial spirit and ongoing economic growth.
Hilton Head Island
Retail Revival: SERG Group Unveils Event Space, Reshaping Island Commerce
A significant commercial redevelopment project is underway on Hilton Head Island, with plans revealed to transform an aging retail space into a dynamic event venue, prompting shifts for established local eateries and signaling continued economic evolution in Beaufort County, SC.
Hilton Head Island’s economy thrives on a vibrant mix of entrepreneurial spirit and strategic investment, constantly adapting to meet evolving demands. The island’s commercial landscape is characterized by innovation, with businesses demonstrating remarkable resilience in a competitive environment. Private investment plays a crucial role in this dynamic, driving revitalization and fostering new opportunities for Hilton Head economic growth. This ongoing evolution underscores the determination of South Carolina SC entrepreneurs to innovate and prosper, contributing to the island’s unique appeal.
The latest development centers on a prominent retail location, highlighting how private sector initiatives can reshape local commerce. While such changes inherently lead to transitions for some long-standing establishments, they also pave the way for new ventures and upgraded facilities that can enhance the overall economic fabric of the community. Hilton Head Island continues to attract and support businesses, reflecting a robust and forward-looking economy.
The Atrium Building’s Transformation
Architects have unveiled detailed plans to convert the Atrium Building, an aging retail space situated at 840 William Hilton Parkway, into a modern event facility for the SERG Restaurant Group. This building, constructed in 1987 and located between the former Stacks Pancakes and Home2 Suites by Hilton, is slated for a comprehensive “total face lift” for its exterior, aiming to modernize its aesthetic. PDG Architects submitted the designs, which include significant interior renovations to create three distinct event spaces.
The first floor of the revitalized Atrium Building will feature offices, a new retail space designated for takeout services, a state-of-the-art commissary kitchen, and a smaller event area. On the second floor, several walls will be removed to establish two larger event spaces, which can be flexibly divided by a foldable wall to accommodate varying group sizes, with a capacity for up to 360 guests. A catering kitchen is also planned for the second level, reinforcing the building’s new focus on events and hospitality. The Town of Hilton Head Island Design Review Board is scheduled to review these plans at an upcoming meeting.
Impact on Local Restaurants and Entrepreneurial Spirit
The planned redevelopment of the Atrium Building has directly affected two family-owned restaurants that previously occupied the space. Red Stripes Caribbean Cuisine and Lounge, which closed on January 17, and DryDock Seafood & Spirits, which is set to close on February 1 after 32 years of operation, both received notices to vacate the premises by February 1.
DryDock Seafood & Spirits, a fixture in the community for over three decades, will not be relocating, as owner Vickie Arbogast confirmed her husband’s decision to retire after nearly five decades in the food and beverage industry. Red Stripes Caribbean Cuisine and Lounge is actively seeking a new location on Hilton Head Island, though its Bluffton location will continue to operate. This situation highlights the challenges and resilience inherent in the Hilton Head small business landscape, where entrepreneurs must adapt to market changes while contributing to the diverse culinary offerings that attract both residents and visitors.
SERG Group’s Vision for Innovation and Growth
The SERG Restaurant Group, established in 1984, is a significant player in the Lowcountry’s hospitality sector, operating 18 restaurants and concepts, including catering services and a dedicated takeout spot. The group is known for its commitment to quality cuisine, exceptional service, and genuine hospitality, aiming to create memorable dining experiences for every guest. Their business model emphasizes creating diverse dining concepts and fostering a community-driven atmosphere.
This latest investment into an event space aligns with SERG Group’s history of innovation and expansion, further diversifying its offerings within the Hilton Head SC business environment. Such private sector investments contribute to job creation and economic vitality, demonstrating confidence in the island’s future as a premier destination for both residents and visitors seeking high-quality experiences.
Hilton Head’s Enduring Economic Strength
Hilton Head Island continues to demonstrate robust economic indicators and growth. In 2024, the island generated an impressive $2.8 billion in tourism revenue from 2.8 million visitors, a substantial economic activity level that rivals many entire counties annually. The entrepreneurial spirit is strong, with 160 new businesses opening in 2024 alone, bringing the total number of active businesses on the island to 2,514. This growth, averaging more than three new businesses per week, spans various sectors, including personal/professional services, food & beverage, and retail.
Furthermore, the Hilton Head Island Airport experienced a 9.5% increase in traffic since 2023, contributing to the influx of visitors and economic activity. Property values have also seen significant appreciation, with a 10.7% increase in median value between 2022 and 2023, reaching $652,100. Beaufort County, home to Hilton Head Island, boasts the highest per capita income in South Carolina and is the only county in the state to exceed national per capita income levels. These indicators underscore a dynamic and thriving economy, attracting private investment and fostering an environment where South Carolina SC entrepreneurs can find opportunities.
Navigating Growth and Preserving Local Character
The ongoing development projects on Hilton Head Island, including the Atrium Building’s transformation, reflect the continuous effort to enhance infrastructure and diversify economic opportunities. While these initiatives contribute significantly to Hilton Head economic growth, they also prompt important conversations about managing development and preserving the island’s unique character and the role of Hilton Head small business in that identity. The Town of Hilton Head Island is committed to thoughtfully managing growth, as outlined in its Strategic Action Plan for Fiscal Years 2026-2028. Efforts include reviewing and revising the Land Management Ordinance (LMO), with an initial draft expected by December 31, 2025, to allow for public review and feedback in early 2026.
Challenges faced by small businesses in the Lowcountry, such as seasonal tourism fluctuations, fierce competition, and the high cost of living, including commercial real estate, highlight the need for adaptable business strategies and supportive community frameworks. Balancing the benefits of private investment and modernization with the desire to maintain the charm and accessibility that define Hilton Head Island is an ongoing priority for local leaders and the community.
Conclusion
The redevelopment plans for the Atrium Building by the SERG Restaurant Group represent a significant private investment set to enhance Hilton Head Island’s event and dining landscape. While this transition means the closure of long-standing local establishments like DryDock Seafood & Spirits and Red Stripes Caribbean Cuisine and Lounge, it also underscores the island’s dynamic economic environment and the continuous evolution necessary for sustained vitality. Hilton Head Island remains a beacon for entrepreneurial innovation and economic growth, propelled by both established entities and resilient small businesses. Residents and visitors alike are encouraged to engage with and support the diverse local businesses that contribute to the unique character and prosperity of our island community, helping to shape Hilton Head’s economic future.
Frequently Asked Questions
What are the plans for the aging retail space on Hilton Head Island?
Architects have revealed plans to turn an aging retail space, specifically the Atrium Building at 840 William Hilton Parkway, into an event space for SERG Restaurant Group. The project includes a “total face lift” for the exterior and the creation of three event spaces indoors.
Which local restaurants are being displaced by this redevelopment?
Two family-owned restaurants, Red Stripes Caribbean Cuisine and Lounge and DryDock Seafood & Spirits, received notices to vacate the Atrium Building. Red Stripes Caribbean Cuisine and Lounge closed on January 17, and DryDock Seafood & Spirits is set to close on February 1 after 32 years.
Why is DryDock Seafood & Spirits closing and not relocating?
DryDock Seafood & Spirits owner Vickie Arbogast confirmed that her restaurant will be closing after 32 years and will not be relocating, citing her husband’s retirement after nearly five decades in the food and beverage business.
What is the SERG Restaurant Group?
The SERG Restaurant Group was established in 1984 and operates 18 restaurants and concepts on Hilton Head Island and in Bluffton, including catering services and a takeout spot. They are dedicated to providing quality cuisine, exceptional service, and genuine hospitality.
What are the planned features of the new event space?
The first floor will house offices, a new retail space for takeout, a new commissary kitchen, and a small event space. The second floor will have two large event spaces, divisible by a foldable wall, capable of accommodating up to 360 guests, along with a catering kitchen.
What is the broader economic context of Hilton Head Island?
Hilton Head Island’s economy is dynamic, with $2.8 billion in tourism revenue from 2.8 million visitors in 2024. In 2024, 160 new businesses opened, contributing to a total of 2,514 active businesses. The Hilton Head Island Airport also saw a 9.5% increase in traffic since 2023.
What challenges do small businesses face in the Lowcountry of South Carolina?
Small businesses in the Lowcountry face challenges such as seasonal fluctuations in tourism, fierce competition, and a high cost of living, which includes finding affordable commercial real estate.
Key Features of the Atrium Building Redevelopment
| Feature | Details |
|---|---|
| Location | 840 William Hilton Parkway, Hilton Head, SC (Atrium Building) |
| Developer | SERG Restaurant Group |
| Project Scope | Transformation of aging retail space (built 1987) into an event space |
| Exterior Renovations | “Total face lift” to modernize the building’s look and feel |
| First Floor Facilities | Offices, new retail space for takeout, new commissary kitchen, small event space |
| Second Floor Facilities | Two large event spaces (divisible by a foldable wall) accommodating up to 360 guests, catering kitchen |
| Displaced Businesses | DryDock Seafood & Spirits (closing Feb 1 after 32 years), Red Stripes Caribbean Cuisine and Lounge (closed Jan 17) |
| Review Board | Town of Hilton Head Island Design Review Board will review plans |
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Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
