CHICAGO—A healthy economy has sustained both domestic and foreign travel to the Upper Midwest in 2017. As a result, occupancy and RevPAR have increased in the Chicago metro area, as well as most other metros in IL, IA, MN, NE, ND, SD, and WI, according to the latest report on the sector from Marcus & Millichap.

“The heightened demand has led to a jump in construction, which may place downward pressure on the occupancy rate into 2018,” the report states. “Nebraska was the only state to post declines across all metrics amid mounting supply pressures as six hotels opened during the prior 12-month period in Omaha alone.”

And this boost in demand whetted investors' appetites for the region's hotel properties during the last four quarters. “A sizable concentration of brand-affiliated hotels, combined with a variety of large and small markets with established and reliable demand drivers, provide an array of potential opportunities for buyers,” according to Marcus & Millichap. “Hotels in the midscale and upper midscale segments were of particular interest to investors amid steady revenue growth.”