Average daily rates were $87.50 per room, down from $90.93 in the second quarter of last year, according to the report. Minneapolis had the highest daily room rate at $98.03, followed by St. Paul at $94.53 and Interstate 494 corridor hotels at $79.51.

The increase is likely due to the economic recovery, according to the GVA Marquette report. The most improvement was in St. Paul, which had an occupancy rate of 56.3% in the first half, up from 51% a year ago. In Minneapolis, occupancy was at 64%, up from 60.2%. The Interstate 494 corridor near the Minneapolis-St. Paul International Airport and the Mall of America, was 66.9%, up from 61.3%.

The local market consists of 27 hotels with a total of 6,354 rooms in Downtown or near the University of Minnesota campus; the St. Paul market consists of 13 hotels in Downtown or near the Midway district with 2,437 rooms; and the Interstate 494 corridor consists of 61 hotels in Bloomington, Eden Prairie and Eagan with 10,118 rooms.