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Market Report

Central Midwest Hospitality Investment Forecast

2022 Outlook

Demand Recovers in Oklahoma;
Small Pipeline Lifts Attractiveness of Quality Assets

Central Midwest keeps pace with neighboring regions. The return of conventions, in-person learning at universities and attendance at Big 12 football games last year drove an occupancy gain in the Central Midwest that mirrored improvements recorded by other nearby markets. The uptick in hotel demand during 2021 was most evident during the second half, highlighted by occupancy in Oklahoma matching the performance registered during the same period in 2019. Kansas was close behind, with occupancy during the six-month span trailing the pre-pandemic figure by roughly 100 basis points. Another positive for the region, each of its three states noted occupancy rates in the 60 percent to 65 percent zone during both June and July. Moving forward, demand drivers that have lifted regional performance will remain steadfast. This combined with a moderate development pipeline and expected increases in business travel and tourism will further lift hotel fundamentals in 2022, allowing the region’s average daily rate to surpass tallies recorded prior to the health crisis.
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