Minnesota's Lodging Performance Stronger than U.S. and Region through the 3rd Quarter of 2013
Release Date: Nov 06, 2013
Minnesota’s Lodging Performance Stronger than U.S. and Region through the 3rd Quarter of 2013
This article and graphs are provided under permission granted by STR (Smith Travel Research, Inc.), the source of the data.
Minnesota experienced modest growth in lodging metrics during the third quarter of 2013, and has outpaced growth of both the U.S. and the region in most metrics through the first nine months of the year. Some of Minnesota’s lodging metrics saw softer growth during the third quarter compared with the first half of the year. However, the total U.S. saw a more substantial third quarter drop-off in growth compared with Minnesota. Within the third quarter, September was the strongest of the three months for Minnesota’s lodging industry. Two sets of graphs, with links below, show changes in Minnesota’s lodging metrics through the third quarter of 2013, including monthly changes going back to the fourth quarter of 2012.
Lodging Performance Changes through the Third Quarter of 2013 for Minnesota, the U.S., the Region and Minnesota Areas – The first three quarters of 2013 saw Minnesota’s year-over-year growth rate exceed the U.S. growth rate for four of six metrics. The exceptions were supply growth (Minnesota +0.2%; U.S. +0.7%) and room rate growth (Minnesota +3.1%; U.S. + 4.0%). Similarly, Minnesota outperformed the seven-state West North Central U.S. region (i.e., including Minnesota) through three quarters with stronger growth in all metrics except room supply (Minnesota +0.2%; region +1.4%). Within Minnesota, four of Minnesota’s 10 distinct market areas (i.e., five in the Minneapolis-St Paul Metro and five in Greater Minnesota) experienced year-over-year growth in all metrics, while the remaining six areas each saw growth in five metrics and slight declines or flat growth in room supply. Overall through the third quarter, lodging metric growth for Greater Minnesota was very similar to growth for the Minneapolis-St Paul Metro.
Through the first three quarters of 2013, year-over-year change for all six metrics was higher than the year-over-year change a year earlier (i.e., the first three quarters of 2012 compared with the first three quarters of 2011). Year-to-date changes in Minnesota lodging metrics for 2013 (i.e., compared with 2012) and 2012 (i.e., compared with 2011) were:
- Occupancy 4.1% for 2013 (1.2% for 2012)
- Room supply 0.2% (-0.4%)
- Demand 4.3% (0.8%)
- Revenue 7.5% (3.6%)
- Room rate 3.1% (2.2%)
- Revenue per available room (RevPar) 7.3% (3.6%)
Month-by-Month Lodging Performance Changes for Minnesota – Compared with the volatility seen during and immediately following the Great Recession, Minnesota’s growth in most lodging metrics has been relatively consistent over the past year. The one distinct exception was April 2013, which provided Minnesota’s strongest post-recession monthly growth to date. During the third quarter, demand growth and occupancy growth weakened relative to the previous nine months. However, continued moderate growth in room rates during the third quarter helped to maintain steady growth in lodging revenue and revenue per available room (i.e., RevPAR). Following nearly two years of flat or declining room supply, Minnesota is finally experiencing a small amount of room supply growth in recent months.
Click below for accompanying graphs of Minnesota lodging performance (repeats of links from above):
- Lodging Performance Changes through the Third Quarter of 2013 for Minnesota, the U.S., the Region and Minnesota Areas
- Month-by-Month Lodging Performance Changes for Minnesota
In addition to these graphs, detailed September 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.)