- Ferguson Appraisals LLC

The Wyoming hotel market consists of 471 properties, totaling approximately 29,000 rooms. Notably, the market is characterized by its small hotels, with an average of around 61 rooms per building—significantly below the U.S. average of 89 rooms per building.

Cost-effective accommodations are prevalent, with over 55% of the rooms falling into the Economy or Midscale categories. The trailing 12-month occupancy rate stands at 56.5%, below the national average of 63.0% for the same period. Although Wyoming initially experienced the impact of COVID-19 with an annualized occupancy drop to 42.3%, its recovery has been slower compared to other hospitality markets. However, RevPAR and ADR have increased drastically throughout much of the state over the last few years.

Additional research is provided by CoStar in the link below.

Market data is provided by CoStar Analytics. Ferguson Appraisals, LLC is a licensed user of CoStar Analytics and has received permission to share the published report.

Rapid City boasts a vibrant and resilient economy propelled by a diverse array of industries. As per Oxford Economics, the city maintains an average annual unemployment rate of 1.9%, significantly lower than the 10-year average of 3.1% and the national average of 3.6%.

In the Rapid City retail market, the vacancy rate is at a low 2.1%, reflecting a 0.8% decrease over the past 12 months. During this period, the market saw absorption of 82,000 SF and the delivery of 11,000 SF. The General Retail subtype dominates with 6.4 million SF in this category. Rental rates are approximately $14.10/SF, marking a 2.2% increase from a year ago. Over the past three years, cumulative rent growth stands at 8.2%.

In terms of sales, there have been 64 transactions totaling approximately $70.4 million in the last three years. During this period, the market cap rate for Rapid City has slightly decreased to 7.9%, just below its trailing three-year average of 8.0%.

For more detailed insights, feel free to reach out to Dustin Ferguson for the latest trends.

Market data is provided by CoStar Analytics. Ferguson Appraisals, LLC is a licensed user of CoStar Analytics and has received permission to share the published report.

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Wyoming Hospitality Market Report 2024

Rapid City Retail Real Estate Report 2024