United States -  Omaha

The Omaha metropolitan area (including Council Bluffs, Iowa) has illustrated annual growth in RevPAR levels since 2010. This growth was initially driven by higher occupancy levels, but more recently, by average rate (ADR) increases. With ADR levels nearing $100, new development projects have surged, and new supply levels surpassed demand increases in four of the last three years. RevPAR growth slowed in 2017, as average rate illustrated a minor decline for the first time since 2010. This trend is expected to continue through 2018, with high levels of recently opened new supply resulting in rate discounts and slowed occupancy growth levels.

Redevelopment efforts in the downtown area are revitalizing the heart of the city, while other ongoing developments throughout the greater metropolitan area are contributing to growth, as well. The $205-million Capitol District, which includes over 250,000 square feet of new office and entertainment space, opened most components in late 2017 and early 2018, including a full-service Marriott hotel, 218 apartment units, and multiple restaurants; additional restaurants and office space are planned to open in 2018 and 2019. Kiewit Corporation is planning to relocate its corporate headquarters to North Downtown by 2020, following the construction of a new office building. In Midtown, NuStyle is spearheading the $110-million redevelopment of the Creighton University Medical Center into a 750-unit apartment complex, while the Nebraska Medical Center is expanding with the recent opening of the Fred and Pamela Buffett Cancer Center in May 2017. Despite the loss of the ConAgra World Headquarters, which relocated to Chicago in late 2016, local activity in the market should continue to increase, supporting the hotel demand growth projected.

Roughly 635 new guestrooms were added to the total hotel supply in 2017, which surpassed the amount of annual new supply added in either 2015 or 2016. The largest project was the 333-room Marriott hotel in Downtown Omaha, across from the Century Link Convention Center. The remainder of the new hotel development included limited-service properties that feature fewer than 100 guestrooms. We are currently tracking roughly 15 proposed projects that represent approximately 2,000 rooms, although we note that some of the more speculative and complex projects may take several years to come to fruition, if at all. Many of the proposed projects are larger than the majority of the recently opened new supply and are located in Downtown and Midtown Omaha.

The pace of local transactions remained somewhat subdued in 2017, a continuation of the trend from recent years, as many property owners in the region have taken a buy/build-and-hold approach. The majority of the sales in the metro area in 2017 represented smaller limited-service properties that transacted for less than $75,000 per guestroom.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Omaha RevPAR Change

Omaha RevPAR

Year RevPAR
2007 $53.63
2008 $54.29
2009 $45.08
2010 $46.40
2011 $47.25
2012 $51.82
2013 $54.65
2014 $56.42
2015 $57.29
2016 $57.69
2017 $58.18
2018 $57.89
2019 (f) $58.76
2020 (f) $59.95

For more information, please contact:

Sara Olson, MAI
[email protected]
  • +1 402 690-0407 (w)