Minnesota's 2012 Lodging Performance Reflects Slow Growth
Release Date: Feb 05, 2013
Minnesota’s 2012 Lodging Performance Reflects Slow Growth
This article and graphs are provided under permission granted by STR (Smith Travel Research, Inc.), the source of the data.
Minnesota’s lodging industry ended the year on a high note, with stronger year-over-year monthly growth in December than in any other month of 2012. Only one metric, room rates, did not achieve this distinction; however, Minnesota’s December room rates saw the strongest monthly growth since July. On an annual basis, changes in Minnesota’s 2012 lodging metrics did not fare as well, especially in comparison with the U.S. and the region. Also, Minnesota’s 2012 annual growth was weaker than 2011 annual growth for every metric.
2012 Lodging Performance Changes for Minnesota, the U.S., the Region and Minnesota Areas – Minnesota saw annual growth in five of six lodging metrics during 2012. The exception was room supply, which decreased 0.3% from 2011. U.S. and regional (i.e., the seven-state West North Central U.S.) growth rates exceeded Minnesota’s growth for all six metrics. Within Minnesota, nearly all of Minnesota’s 10 distinct market areas (i.e., five in the Minneapolis-St Paul Metro and five in Greater Minnesota) experienced annual year-over-year growth in revenue, room rates and revenue per available room (i.e., RevPAR). However, each of the other three metrics (i.e., occupancy, supply and demand) saw declines for a number of Minnesota areas, with the declines concentrated in the Metro region. For the Metro region overall, a decline in supply (-0.8%) was accompanied by a smaller decline in demand (-0.8%), which resulted in annual growth of 0.4% in occupancy. The fourth quarter of 2012 saw stronger growth in the Metro region, especially in December when Metro growth in most metrics was similar to growth in Greater Minnesota.
Annual 2012 changes in Minnesota lodging metrics (i.e., compared with 2011) and 2011 compared with 2010 were:
- Occupancy 1.7% for 2012 (3.9% for 2011)
- Supply -0.3% (0.3%)
- Demand 1.4% (4.2%)
- Revenue 3.7% (8.8%)
- Room rate 2.2% (4.4%)
- RevPar 4.0% (8.5%)
2012 Month-by-Month Lodging Performance for Minnesota – Following relatively weak growth in year-over-year monthly lodging metrics through the first few months of 2012, Minnesota’s lodging performance generally picked up as the year progressed, especially during the fourth quarter. December saw stronger year-over-year monthly growth than any other month of 2012, with room rates being the only metric for which December growth did not exceed growth in every other month. Furthermore, the level of growth for every metric trended stronger throughout the fourth quarter. This positive trend bodes well for continued improvement in lodging performance in 2013.
Click below for accompanying graphs of Minnesota lodging performance (repeats of links from above):
- 2012 Lodging Performance Changes for Minnesota, the U.S., the Region and Minnesota Areas
- 2012 Month-by-Month Lodging Performance for Minnesota
In addition to these graphs, detailed December and full year 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.)