Activity Picks Up in Hotel Market, Led by Downtown Minneapolis

  • Performance at existing properties improved, including a 5.0% increase in RevPAR
  • Downtown Minneapolis saw several significant transactions close in the second half
  • Development in suburban markets also picking up

The Minnesota hotel industry, encompassing 874 properties for a total of 71,902 rooms, saw performance improvements in 2012. Occupancy increased from 60.5% in November 2011 to 61.4% in November 2012. The state is still slightly below the national average of 62.6%. The average daily rate (ADR) also increased, going from $90.71 in November 2011 to $92.75 in November 2012. Revenue per available room (RevPAR)—the hotel industry’s key financial measure—increased by 5.0%.

Hotels-YTD-0113_700px

A closer look at the submarkets shows that Bloomington continues to enjoy the highest occupancy at 70.3%, which is derived from its proximity to the Minneapolis-St. Paul International Airport and the Mall of America. Minneapolis, though, still attracts the highest average daily rates at $126.25.

To read more, visit the January 2013 edition of Cushman & Wakefield/NorthMarq’s Compass report, now available online.  Visit the web site: www.northmarqcompass.com

About Cushman & Wakefield/NorthMarq

​Cushman & Wakefield/NorthMarq is a joint venture formed in September 2011 by NorthMarq Real Estate Services and the Minnesota operations of global real estate services firm Cushman & Wakefield. By combining the talent of both organizations at the regional level with the global platform of Cushman & Wakefield, we offer clients the best combination of regional strength and global capabilities. The result: the leading commercial real estate firm by all measures in the Upper Midwest.
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