By Tim Storey,
Senior Associate, Capital Markets — Hospitality
Welcome to a new recurring feature on the Minneapolis-St. Paul blog, wherein we check on the latest market data in the Twin Cities and outstate Minnesota hotel market. We at Cushman & Wakefield are proud to sponsor these data, which are provided monthly by STR Global as part of their STAR Report. With that, let’s see what’s going on in the Minnesota hotel world:
- Statewide hotel demand declined nearly 2.0% in January compared to last year, while supply increased 2.5%. Occupancy decreased more than 4% year-over-year to 47.5%. Average daily revenue (ADR) decreased in January more than 6% to $102.48 while Revenue Per Available Room (RevPAR) was nearly 11% lower, at $48.73.
- In the Twin Cities, demand decreased nearly 5.0% in January compared to last year, while supply increased more than 3.0%. ADR was more than 10.0% lower than January last year at $105.26. Minneapolis experienced a demand decrease of nearly 11.0% and occupancy decreased over 12% to 51.0%. In St. Paul, occupancy was 48.5%, nearly 8% lower compared to last year.
- Within Minnesota, Mankato experienced the greatest year-over-year demand increase at 13.0%, while ADR increased more than 3.0% and RevPAR increased 17%. Rochester had the highest occupancy at 57%, an increase of 4% over last year, while RevPAR increased 4.7% to $65.21. St. Cloud had a 4.7% supply increase and a 2.4% demand increase resulting in over a 2% occupancy decrease and 3.6% RevPAR decline.
Tim Storey is a member of the Midwest Hospitality team at Cushman & Wakefield, where he focuses on the analysis and disposition of hotel properties in the Upper Midwest region and an emphasis on exclusive seller representation. Tim provides his team’s clients access to the largest pool of qualified investors locally, nationally and internationally, creating maximum exposure for their properties and a competitive bidding environment. Tim is committed to the highest level of client service, direct involvement in every transaction and superior underwriting. Contact Tim here.