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Market Report

North Central Hospitality Investment Forecast

2022 Outlook

Critical Drivers of Hotel Demand Restored as
Renewed Interest in Midscale Emerges

Universities a catalyst for hotel recovery. The return of students to college campuses and full capacity at Big Ten, Notre Dame and MAC football games restored a primary revenue stream to the hospitality sector in the second half of 2021. The boost in hotel patronage lifted fundamentals, with revenue metrics during the six-month span exceeding or nearly matching pre-pandemic performance. Regional occupancy reached nearly 60 percent, trailing the same period in 2019 by just 3 percent, and ADR advanced by 5 percent. Michigan stood out, as the state recorded the largest improvements in occupancy and ADR, lifting RevPAR beyond the second-half-2019 figure. Elsewhere, occupancy gains in Ohio and Indiana raised each state’s ADR beyond pre-health crisis rates. Moving forward, the return of conventions to major metros and a collection of national sporting events will further the hotel sector's recovery, as the volume of overnight stays rises. This improvement will support a level of regional hotel performance that outpaces the neighboring Central and Upper Midwest markets.
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