Is Rochester, Minn., suffering from oversupply?

Rochester, Minn., has seen an influx of new hotel developments since the Mayo Clinic announced its multibillion-dollar expansion. However, the Rochester Convention and Visitors Bureau had considered asking the City Council for a moratorium on limited-service hotels, which don't have an attached restaurant. This plan comes from a concern that a high volume of limited service properties could scare away the full service hotels the city is looking for.

The CVB eventually decided against a moratorium.

There are two high-end hotels in development, and the city is worried about over-supply in a market with a hotel occupancy rate at approximately 67 percent, versus 83.5 percent in Minneapolis.


Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Suggested Articles

The development, located near the entrance to Walt Disney World Resort, will include 997 guestrooms and a sports facility.

David Batchelor describes the shift to adjacent spaces as 'here to stay'

Absolute values for ADR and RevPAR were the highest that STR has ever benchmarked, but RevPAR’s growth rate was the lowest it’s been since 2010.