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Hospitality Sector Booms in Upper Midwest

But supply pressures may lower vacancy in IL as developers in the metro of Chicago have roughly 4,000 rooms under construction, according to Marcus & Millichap.

By Brian J. Rogal | Updated on November 27, 2017

chi-Viceroy_Chicago5 A room at the new Viceroy Chicago, a 180-room hotel on the city’s Near North Side.

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.”

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