- 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%.
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