COLUMBIA - Myrtle Beach's publicly backed convention center hotel didn't make as much money as officials expected in its first few months, and Columbia officials have taken notice.

Although Myrtle Beach and Columbia officials say the shortfalls aren't anything to panic about, they have made an impression on the people making financial projections for Columbia's publicly backed hotel.

"If it was year three of the project in Myrtle Beach, I would be a lot more concerned," said Steve Gantt, the assistant city manager in charge of the hotel project.

In December, Columbia chose to hire Edens & Avant to build a 300-room Hilton to serve the convention center. The city is guaranteeing $23 million of the $60 million cost with tax dollars. Controversy surrounded the decision because Columbia turned down an offer from a private developer, John Q. Hammons, to build the hotel with his own money.

Gantt said he is monitoring the success of Myrtle Beach's 400-room Radisson. In order for the city to borrow the money for the project, a private consultant must issue a feasibility study that predicts the hotel will be a success. That report will be released Wednesday.

Gantt said the only thing the city can do now is continue to work on keeping costs down on the project to limit the city's financial risk.

The projected revenue from Columbia's hotel will be determined primarily by a feasibility study completed by PKF of Atlanta.

Peter Keim, the consultant, will present the study to Columbia City Council on Wednesday. Keim said he takes into account the performance of other hotels in similar situations when making projections.

Keim would not divulge the results of his study but said Columbia's hotel should make enough money to pay its debt.

Walt Standish, the president of the city-backed, nonprofit corporation in Myrtle Beach that owns the Radisson, said he is confident the hotel will be a success, but he admitted the revenue projections may have been a little optimistic.

In April and May, the hotel made about $1.54 million, but it was projected to make about $1.9 million.

Standish said the corporation will have to use money from its reserve fund to pay its semiannual debt payment in October, again in April and possibly longer.

The first payment is $1.9 million, and then the payment goes up to $2.6 million thereafter.

Taking money from that fund is expected in the first few years, but the amount borrowed could be a concern if it is more than expected.

After the reserve is tapped, Myrtle Beach has 12 months to repay what is borrowed. The idea is that the hotel will pick up business and make enough profit to refund the reserve, said Mark Kruea, spokesman for Myrtle Beach.

Myrtle Beach will be required to pay up to $1.5 million annually for up to $23 million if the hotel can't pay off its debt.

Columbia's financing would require it to pay up to $2 million annually, up to $23 million.

Standish, president and chief executive of Beach First National Bank, said it is normal for hotels to borrow from their reserves in their first three years of operation.

Still, although the projections took into account the ramp-up period hotels need to establish business, the hotel has not met those projections.

The Radisson has not booked as many rooms or sold as much food and drinks as projected, with sluggish sales being blamed on the weak economy and war in Iraq.

Nationally, there are few publicly financed hotels operating, although many are under construction.

The first to open, Sacramento's 500-room Sheraton hotel, has underperformed budget expectations but still is paying the bills with profits to spare.