Hotel rooms in the Central Midwest states of Kansas, Missouri and Oklahoma remain in demand. And that’s good news for the owners of hotel properties in these three Midwest states.
Marcus & Millichap recently released its Central Midwest hospitality report, research that contained plenty of good news for hotel operators in this region. Marcus reported that as room vacancy rates fall, hospitality transactions have increased in each of the three states of Oklahoma, Kansas and Missouri. Sales volume had risen especially high in the Kansas City metropolitan region during the first half of 2017.
Marcus & Millichap reported that occupancy in the Central Midwest region climbed 50 basis points since last June to 68.9 percent.
Oklahoma led the region in occupancy growth as the addition of new rooms here did not outpace an increase of 7.6 percent in room nights during the last four quarters. As a result, occupancy in the state rose an impressive 200 basis points year-over-year to 62.5 percent.
Missouri, though, maintained the highest occupancy rate in June at 73.4 percent, up 40 basis points year-over-year. The Kansas City metropolitan area posted an increase of 200 basis points in its occupancy rate during this time, with the rate rising to 78.1 percent.
St. Louis, though, did see a drop in occupancy rates, with its rate falling 50 basis points during the last 12 months to 76.8 percent.
Rooms in the Central Midwest region are getting more expensive, with Marcus & Millichap reporting that the average daily room rate rose 2.8 percent to $94.07 during the last 12 months. The rise in regional occupancy rates combined with the increase in daily room rates, meant that RevPAR – or revenue per available room – rose 3.7 percent in the Central Midwest region to $65.25.
In Missouri, the average daily room rate rose 3.5 percent, while its RevPAR jumped 4 percent. In the Kansas City area, the average daily room rate climbed 3.8 percent to $106.33 while RevPAR increased 6.5 percent to $83.01.
Oklahoma and Kansas each saw solid increases in both daily room rates and RevPAR, too. Oklahoma’s RevPAR increased 4.7 percent to $50.29, while in Kansas the daily average rate edged up 2.5 percent.
At the same time, more hotels sold for higher prices in the Central Midwest region. Marcus & Millichap reported that as transaction velocity increased during the second quarter of the year, the average price of a hotel in the region jumped 12 percent to $48,500 a room. Hotel properties in Missouri accounted for about half of all hospitality transactions in the region during this Hotel rooms in the Central Midwest states of Kansas, Missouri and Oklahoma remain in demand. And that’s good news for the owners of hotel properties in these three Midwest states.
Marcus & Millichap recently released its Central Midwest hospitality report, research that contained plenty of good news for hotel operators in this region. Marcus reported that as room vacancy rates fall, hospitality transactions have increased in each of the three states of Oklahoma, Kansas and Missouri. Sales volume had risen especially high in the Kansas City metropolitan region during the first half of 2017.
Marcus & Millichap reported that occupancy in the Central Midwest region climbed 50 basis points since last June to 68.9 percent.
Oklahoma led the region in occupancy growth as the addition of new rooms here did not outpace an increase of 7.6 percent in room nights during the last four quarters. As a result, occupancy in the state rose an impressive 200 basis points year-over-year to 62.5 percent.
Missouri, though, maintained the highest occupancy rate in June at 73.4 percent, up 40 basis points year-over-year. The Kansas City metropolitan area posted an increase of 200 basis points in its occupancy rate during this time, with the rate rising to 78.1 percent.
St. Louis, though, did see a drop in occupancy rates, with its rate falling 50 basis points during the last 12 months to 76.8 percent.
Rooms in the Central Midwest region are getting more expensive, with Marcus & Millichap reporting that the average daily room rate rose 2.8 percent to $94.07 during the last 12 months. The rise in regional occupancy rates combined with the increase in daily room rates, meant that RevPAR – or revenue per available room – rose 3.7 percent in the Central Midwest region to $65.25.
In Missouri, the average daily room rate rose 3.5 percent, while its RevPAR jumped 4 percent. In the Kansas City area, the average daily room rate climbed 3.8 percent to $106.33 while RevPAR increased 6.5 percent to $83.01.
Oklahoma and Kansas each saw solid increases in both daily room rates and RevPAR, too. Oklahoma’s RevPAR increased 4.7 percent to $50.29, while in Kansas the daily average rate edged up 2.5 percent.
At the same time, more hotels sold for higher prices in the Central Midwest region. Marcus & Millichap reported that as transaction velocity increased during the second quarter of the year, the average price of a hotel in the region jumped 12 percent to $48,500 a room. Hotel properties in Missouri accounted for about half of all hospitality transactions in the region during this period.
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