Minnesota’s Lodging Sector Saw Growth Again in 1st Quarter of 2013
Release Date: Apr 30, 2013
This article and graphs are provided under permission granted by STR (Smith Travel Research, Inc.), the source of the data.
Minnesota’s lodging industry picked up in early 2013 where it left off at the end of 2012, with moderate overall 1st quarter year-over-year growth. Five of six metrics saw growth, including occupancy growth of almost 5%. A small decline in room supply was the exception. Two sets of graphs, with links below, show changes in Minnesota’s lodging metrics during the 1st quarter of 2013.
First Quarter 2013 Lodging Performance Changes for Minnesota, the U.S., the Region and Minnesota Areas – Minnesota outperformed the U.S. in demand and occupancy growth, and substantially outperformed the seven-state North Central U.S. region in 1st quarter growth in four of six metrics (i.e., all except room supply and room rates). Stubbornly low room rate growth (1.1%) continues to stifle growth in Minnesota’s revenue-related metrics. The 1st quarter 2013 lodging performance stands in contrast to a year ago, when Minnesota trailed U.S. and regional growth rates for all six metrics. Within Minnesota, all 10 of Minnesota’s distinct market areas (i.e., five in the Minneapolis-St Paul Metro and five in Greater Minnesota) experienced annual year-over-year growth in occupancy and revenue, and nine of the 10 saw varying levels of growth in revenue per available room (i.e., RevPAR). Metro growth in each of the six metrics was slightly lower than statewide growth.
First quarter 2013 changes in Minnesota lodging metrics (i.e., compared with 2012) and 2012 compared with 2011 were:
- Occupancy 4.7% for 2013 (1.7% for 2012)
- Room supply -0.4% (-0.3%)
- Demand 4.3% (1.4%)
- Revenue 5.4% (3.7%)
- Room rate 1.1% (2.2%)
- RevPar 5.8% (4.0%)
Month-by-Month Lodging Performance Changes for Minnesota – Minnesota’s growth in most lodging metrics has been relatively consistent over the past 11 months, beginning with May 2012. Exceptions included high growth months of December 2012 and February 2013, and low growth months of September 2012 and March 2013. Some portion of the downturn in March can be attributed to a calendar shift of Easter from April in 2012 to March this year. (Folks tend to stay home around Easter.) This points toward a slight Easter-related bump in upcoming April metrics.
Click below for accompanying graphs of Minnesota lodging performance (repeats of links from above):
- First Quarter 2013 Lodging Performance Changes for Minnesota, the U.S., the Region and Minnesota Areas
- Month-by-Month Lodging Performance Changes for Minnesota
In addition to these graphs, detailed March and year-to-date lodging metrics for Minnesota can be viewed online for a limited time at Current STR Lodging Metrics for Minnesota. (Note: The most current available monthly lodging metrics are replaced by data for the subsequent month when they are provided by STR.)