HIGHLIGHTS: January 2017 issue of the award-wining Compass Report
Hot off the press – our January 2017 Compass Report is now available. We thought you’d be interested in a recap of the Hotel and CRE market over the last 6 months and an outlook for the first half of 2017. Below are highlights from our award-winning report.
Renovation and redevelopment heavy across all property types
Downtown Minneapolis is a hotel development hotbed
Hotel development pipeline loaded, slowdown projected
Minneapolis/St. Paul YTD RevPAR growth is 5.2%, statewide is 3.7%
Investor demand still outpacing supply in the region
The Twin Cities hotel industry has experienced over 80 consecutive months of growth. Occupancy growth has leveled off due to a rapid increase in new room supply, but the big story is that pricing power continues. Year-to-date 2016 Q4 RevPAR (revenue per available room) jumped 5.2% to $83.17, and average daily rate (ADR) climbed 5.5% to $119.62. Smith Travel Research reported that RevPAR and demand levels for U.S. hotels nationally were the highest for any September on record. Investors are still aggressively seeking quality assets and sellers are looking to capitalize on still-solid market fundamentals. However, values have likely peaked and investors may no longer be willing to pay premium prices. That being said, it remains a seller’s market.
- The leading and award-winning commercial real estate market intelligence report in the Upper Midwest
- Published bi-annually by Cushman & Wakefield NorthMarq, the Twin Cities’ #1 CRE Brokerage and Property Management Firm
- Leverages market intelligence from our 90+ brokers and leading research team
- The full report can be found on the Compass website, featuring an Executive Summary, in-depth trends and data for all Product Types, and submarket reports by Product Type.
If you’re interested in access to the full report (and email alerts when upcoming reports are released), please contact us or click here to subscribe. I hope you find this information helpful in your firm’s commercial real estate decision making process.