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ADR, RevPAR Increase Modestly Across Central Midwest
Although hotel occupancy remained flat across the Central Midwest, regional ADR and RevPAR registered modest increases during the year ending in June, Marcus & Millichap reported. ADR climbed 1.6% to $90.13, while RevPAR edged up 1.4% to $52.55.
Oklahoma posted the smallest gain in ADR during this time: just 0.5%. Yet the state’s strong occupancy growth boosted RevPAR 4.9%, the largest gain in the region.
ADR in Kansas and Missouri rose 1.7% to $87.43 and 2.4% to $99.05, respectively, over the 12-month period. Declining vacancy, combined with the uptick in ADR, generated a 0.6% increase in RevPAR in Missouri, while RevPAR in Kansas ticked down 0.3%.
Across the region, sales during the past four quarters remained widespread across chain scales, with limited service, select service and independent hotels relatively equally targeted. First-year returns for these hotels were in the low-6% to mid-9% band, depending on property location and type.
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