Research Monthly report
Iowa hotel market update, November 2025
- Iowa
Hotel fundamentals across Iowa remain stable but subdued, with 12-month occupancy at 50.5%, ADR at $105, and RevPAR at $53 - each essentially flat year-over-year (occupancy -0.9%, ADR +0.1%, RevPAR -0.7%) as demand growth has softened. 6 hotels sold and 8 new hotels are in the works.
Iowa's hotel market for November 2025: how hotels performed, what sold, where rates stand and what is being built. For a closer look at a specific market or hotel, ask for a report.
Performance
Hotel fundamentals across Iowa remain stable but subdued, with 12-month occupancy at 50.5%, ADR at $105, and RevPAR at $53 - each essentially flat year-over-year (occupancy -0.9%, ADR +0.1%, RevPAR -0.7%) as demand growth has softened. The market continues to track below its long-run averages, but supply pressure is minimal, with only five hotels and 416 rooms under construction, representing 1.0% of Iowa's inventory. Transaction activity remains moderate, with 43 hotels trading over the past 12 months for a combined $75.5M, below the three-year average of $102M, and pricing reflecting higher required yields - market cap rates averaging 11.6%, well above the national level. Overall, Iowa continues to operate in a steady but low-growth environment, with muted RevPAR trends, limited new construction, and an investment market defined by value-focused buyers and elevated cap rates.
Sales
| Hotel | City | Price | Note |
|---|---|---|---|
| Travelodge Missouri Valley | Missouri Valley | - | Part of 40-hotel portfolio |
| Travelodge Clinton | Clinton | - | Part of 40-hotel portfolio |
| Covered Bridge Inn Winterset | Winterset | $925,000 | |
| Staybridge Suites Cedar Rapids North | Cedar Rapids | $4,450,000 | |
| Sonesta Simply Suites West Des Moines | West Des Moines | - | Part of 34-hotel portfolio |
| Comfort Inn Marquette | Marquette | $2,600,000 |
Sale prices come from public records and may not include capital allocated to FF&E or goodwill. Want to know more about one of these sales? Get in touch.
Capital markets
| Rate | As of November 30, 2025 |
|---|---|
| Prime rate | 7% |
| 10-year Treasury | 4.088% |
| 5-year Treasury | 3.66% |
New developments
Boundaries, roads and water: U.S. Census Bureau (TIGER/Line).
New hotels in Iowa:
- AC Hotel Cedar Rapids West, Cedar Rapids
- Boutique Hotel at Field of Dreams, Dyersville
- The Key Hotel Dubuque (Tapestry Collection), Dubuque
- Holiday Inn Express Cedar Rapids SW, Cedar Rapids
- Hotel Osceola, Osceola
- Element Hotel, Des Moines
- Hyatt House, West Des Moines
- Tru by Hilton, Ankeny
Other developments that bring travelers:
- Meredith / Dotdash HQ Expansion, Des Moines
- Krause+ Gateway District Redevelopment, Des Moines
- DSM Airport Terminal Expansion, Des Moines
- Iowa Events Center / Wells Fargo Arena Upgrades, Des Moines
- University of Iowa Hospital Expansion, Iowa City
- Cedar Rapids Downtown Reinvestment Projects, Cedar Rapids
- Riverfront Crossings Redevelopment, Iowa City
- Collins Aerospace Expansion, Cedar Rapids
- Field of Dreams Stadium & Campus Expansion, Dyersville
- Ames Research Park Expansion, Ames
- Iowa State University Campus & Research Buildouts, Ames
- Google Data Center Expansion, Council Bluffs
- Sioux City Downtown Revitalization, Sioux City
Tools
- Full hotel underwriting and waterfall model. Download the Excel model free. Questions or changes you'd recommend are welcome.
- A report on your hotel or market. Ask for one and we'll be in touch.
Thinking about what your hotel would sell for? Request a valuation.