The occupancy level in the second half was 67.4%, up from 63.2% in the second half of 2003, according to the GVA Marquette Advisors report. Demand was up 5.1%, with the biggest increase in demand in St. Paul, which had an 11.6% increase.
Average daily rates were $92.38 per room, up from $90.29 in the second half of last year, according to the report. Minneapolis had the highest daily room rate at $108.85, followed by St. Paul at $95.07 and Interstate 494 corridor hotels at $81.13.
The most improvement was in St. Paul, which had an occupancy rate of 58.1% in the first half, up from 52.1% the prior period. In Minneapolis, occupancy was at 67.8%, up from 64.6%, and the Interstate 494 corridor near the Minneapolis-St. Paul International Airport and the Mall of America, was 69.2%, up from 64.8%.
The Minneapolis market consists of 27 hotels with a total of 6,531 rooms in the downtown or near the University of Minnesota camps; the St. Paul consists of 13 hotels in downtown or near the Midway district with 2,436 rooms; and the Interstate 494 corridor consists of 61 hotels in Bloomington, Eden Prairie and Eagan with 9,683 rooms.
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