Madison, WI hotel market report, Q1 2026

Madison's hotels are running at or above their ten-year ceiling on every measure. Over the twelve months to April 2, 2026 the market ran 61.6% occupancy, a $144.22 ADR and $88.90 RevPAR, all up on the year, on the strength of the university, state government, Epic Systems and UW Health.

Executive summary

As of April 2026, CoStar tracks 73 operating hotels and 8,432 inventory rooms in the Madison market, including hotels in Middleton, Fitchburg and Monona that CoStar counts as part of Madison. That makes it one of the larger secondary hotel markets in the Upper Midwest. Occupancy of 61.6% (+3.11%) is in the upper part of its ten-year typical range (48.8% to 67.3%), a sign of continued demand growth absorbing recent new supply. ADR of $144.22 is above CoStar's ten-year high of $139.33, and RevPAR of $88.90 sits right at its ten-year ceiling.

The market rests on some of the strongest institutional demand in the Midwest: the University of Wisconsin-Madison (21,000+ employees, 45,000+ students), Epic Systems (13,000 employees in neighboring Verona), UW Health (10,000+ employees), American Family Insurance (12,500 employees) and the State of Wisconsin. Together these five generate an estimated 75%+ of the market's commercial hotel demand. The Monona Terrace Convention Center, the Kohl Center and the State Capitol support a strong meetings, conventions and events segment that compresses the whole city regularly.

The pipeline is measured for a market this size: one hotel under construction (an 82-room Tribute Portfolio, due late 2026), three in final planning (366 rooms) and three proposed (485 rooms). The largest, a proposed 216-room Autograph Collection near Capitol Square, reflects developer confidence in Madison's upper-tier demand. Sales have come back: CoStar recorded $48.8M across 8 transactions in the trailing twelve months, and the market sale price of $96,400 a room is a ten-year high.

The market

Madison is Wisconsin's capital and the seat of Dane County, on an isthmus between Lake Mendota and Lake Monona. With about 278,000 people in the city and more than 692,000 in the metro, it is Wisconsin's second-largest city and one of the fastest-growing mid-sized cities in the Midwest. It sits about 79 miles west of Milwaukee and 148 miles north of Chicago, a regional hub within reach of a large Midwestern drive market.

Its economy is widely seen as one of the most resilient and diversified in the Midwest. A major research university, state government, a global healthcare IT anchor (Epic Systems) and a growing insurance and technology sector make a deep demand base that holds up in recessions. Unemployment of about 2.4% runs well below national and state rates, and the city's population is projected to pass 385,000 by 2050. Twin Cities Business Magazine and regional economic reports regularly rank Madison among the Midwest's top metros for economic vitality and talent retention.

Madison is mainly a drive market. Dane County Regional Airport (MSN) has limited connections to major hubs. An hour and a half from Milwaukee and two and a half from Chicago, it draws weekend leisure travelers and day-trip business visitors, while the institutions keep weekdays busy. The isthmus, Capitol Square, the State Street entertainment district and the lakes give it a distinct leisure appeal on top of its institutional base.

About the market's boundary. CoStar defines the Madison hotel market broadly, taking in hotels in neighboring municipalities: Middleton (the west corridor, home to several select-service hotels), Fitchburg (south Madison, including the Wyndham Garden) and areas next to Monona and Maple Bluff. All 73 hotels and 8,432 rooms in this report reflect that full boundary, the way investors and operators track the market.

New supply

Development downtown is disciplined: land, zoning and construction costs limit speculative building. As of April 2026 CoStar tracks 82 rooms under construction, 366 in final planning and 485 proposed. The pipeline is concentrated in upper-upscale, upscale and extended-stay hotels, exactly where downtown Madison has had the most unmet demand from university, healthcare and corporate travelers.

Under construction

Tribute Portfolio Hotel Madison Downtown (82 rooms). The most significant near-term addition is an 82-room Tribute Portfolio hotel in the restored Churchill Building at 16 N. Carroll Street on Capitol Square. Developed by Hovde Properties, the Churchill Building dates from 1915 and was Madison's original "skyscraper." The adaptive reuse keeps original details such as the iron railings and mosaic tile floors while adding a full-service Marriott Tribute Portfolio flag, a lifestyle soft brand for design-minded upscale travelers. Next to the State Capitol, Monona Terrace and the coming Wisconsin History Center, it should draw government, meetings and leisure demand. Expected opening: late 2026.

Final planning

Tempo by Hilton Madison Downtown East (139 rooms). Tempo is Hilton's upper-midscale lifestyle brand aimed at modern business and younger travelers, with streamlined amenities and design-forward rooms. It sits between Hampton Inn and DoubleTree, a new tier for Hilton in a market where it already has the largest franchise share.

Homewood Suites by Hilton Madison Downtown East (127 rooms). It would bring Hilton's upscale extended-stay brand to an underserved corridor. Homewood targets business travelers and project guests who need weekly rates and full kitchens, and should draw heavily from healthcare and tech visitors.

Avid Hotel Madison East (100 rooms). IHG's value-oriented brand for budget-minded business travelers: free breakfast, a fitness center and good beds at a price below Holiday Inn Express. It would be IHG's first Avid in Madison.

Proposed

Autograph Collection Madison Downtown Capitol (216 rooms). The largest and most visible proposal is a 216-room Marriott Autograph Collection hotel near Capitol Square. Autograph is Marriott's soft brand for distinctive boutique hotels, and this would be the highest-quality new-build flag in Madison in a decade, aimed at upscale to upper-upscale leisure and meetings. The developer and timeline have not been announced.

Homewood Suites by Hilton West Madison University (145 rooms). A second Homewood is proposed in the west Madison and university corridor, aimed at steady extended-stay demand from UW-Madison research affiliates, Epic visitors and UW Health's west-side healthcare workers.

Residence Inn by Marriott Madison Downtown (124 rooms). Marriott's main extended-stay brand, for business and government travelers, a deep segment in Madison given state offices, UW-Madison research and healthcare professional development.

Demand drivers

Madison has one of the most diversified, institution-anchored demand bases of any secondary market in the Upper Midwest: a world-class research university, a global healthcare IT anchor, the state government, a full-service convention center and a nationally known sports program. University and education demand is estimated at about 30% of hotel occupancy, the largest segment, with healthcare and medical close behind at 22%.

University and education (about 30% of demand)

UW-Madison is the dominant economic and hotel demand anchor. With 21,000+ employees, 45,000+ students and research spending above $1.4 billion a year, it draws visiting faculty, researchers, prospective students, parents, conference attendees and alumni all year. Graduation weekends (May and December), Homecoming, move-in and move-out and a full calendar of academic conferences drive demand. Big Ten athletics, especially football at the 80,321-seat Camp Randall Stadium and men's hockey, often sell out the whole city on game weekends. The new College of Data and Informational Sciences building (2025) points to continued growth in technology programs.

Healthcare and medical (about 22%)

UW Health is Madison's second-largest employer and a major source of overnight demand. It runs the 614-bed University Hospital, American Family Children's Hospital, East Madison Hospital and 80+ clinics across southern Wisconsin and northern Illinois. A $900 million-plus expansion is underway, adding to University Hospital and East Madison Hospital (both late 2026) and building the new University Row Medical Center (patients from 2028). That investment will bring construction workers, patient families and visiting physicians through 2028 and beyond. SSM Health St. Mary's Hospital adds more healthcare employment and visitors.

Corporate and business (about 20%)

Epic Systems, based in Verona 10 miles southeast of Madison, employs about 13,000 people and drives heavy midweek demand from its clients, hospitals and health systems from around the world visiting for training, implementations and conferences. Epic's campus has themed meeting spaces but little lodging, so Madison hotels house its visitors. American Family Insurance (12,500 employees) and a growing cluster of insurtech, biotech and financial-services firms add Monday-to-Thursday demand.

Government and civic (about 12%)

As the state capital, Madison hosts state agencies, the Legislature and the Governor's office, which bring steady weekday demand from lobbyists, consultants, contractors and out-of-state government visitors. The new Wisconsin History Center, a $300M+ state museum under construction on Capitol Square next to the Tribute Portfolio site, will be a major new draw for heritage tourism, school groups and regional visitors when it opens in 2026-2027.

Leisure and tourism (about 10%)

The lakes, the State Street entertainment district, the Capitol Square farmers market (the largest in the country) and Wisconsin Dells 45 minutes north make a strong summer leisure draw. Visit Madison has positioned the city well for weekend trips from Milwaukee and Chicago, backed by a growing food scene, live music and lakefront recreation.

Events and sports (about 6%)

The Kohl Center (17,000+ seats) hosts UW-Madison basketball, men's hockey, major concerts and large consumer events, including NCAA tournament games. Badgers football at Camp Randall (80,000+ seats) drives the market's biggest single-event spikes: home game weekends consistently bring 90%+ citywide occupancy and $200+ ADR premiums. The Alliant Energy Center, Madison's multipurpose expo facility, adds events and trade shows outside the university calendar.

Six of these developments were added to the Upper Midwest Development Tracker through this research; the Levy Engineering Hall and the State Street garage were already in it.

Performance

All occupancy, ADR and RevPAR figures are from CoStar's April 2026 market report for Madison, WI (report #205885561, April 2, 2026). The analytic pool covers 8,844 rooms in 94 tracked hotels, with ten years of monthly data from 2016 through the first quarter of 2026.

Seasonality

Madison's season follows the academic calendar, summer leisure and Badgers athletics. In 2025, occupancy climbed from 44% in January to a summer peak of 75% in July and August, on summer conferences, sports camps and UW research programs. October and football season are a second peak (68% occupancy, $177 ADR). A sharp trough runs from November into January as the university goes on break, with occupancy at 43% to 44% and ADR between $100 and $118. Early 2026 is tracking 2025: occupancy of 44% to 55% in January and February, with ADR slightly ahead at $107 to $120.

Madison vs. Milwaukee and Green Bay

For context, CoStar's April 2026 data was pulled for two Wisconsin peers, Milwaukee and Green Bay. In this comparison Madison leads all three on occupancy (63.0%) and ranks second on RevPAR ($85.24), less than two dollars behind Milwaukee's $86.61. Milwaukee has the highest ADR ($145.85), reflecting its larger corporate base and convention demand, while Green Bay, with 43 hotels and 4,409 rooms, posts the lowest figures on all three. Madison's occupancy lead relative to its rate reflects a dense, event-driven calendar anchored by the UW-Madison campus.

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Brands and white space

Madison is one of the most heavily branded secondary markets in the Upper Midwest, with nearly every major franchise family present. Across its 73 operating hotels and 8,432 rooms, including Middleton, Fitchburg and the Monona area, Hilton leads with 15 hotels, the largest share of any parent. Choice Hotels follows with 11, Wyndham with 10, and IHG and Marriott with 7 each. Fourteen independents add character, led by the landmark Madison Concourse Hotel (373 rooms) and The Edgewater (202 rooms). The property data below is from CoStar's property records.

Hilton dominates, with 15 hotels from Graduate (an upper-upscale soft brand) down to Tru (midscale). Choice Hotels has 11 across Comfort, Cambria, Quality, Sleep Inn, MainStay, Country Inn, Econo Lodge and Rodeway. Wyndham has 10, strong in midscale and economy. IHG and Marriott have 7 operating hotels each, though Marriott's pipeline (the Tribute Portfolio under construction plus the proposed Autograph Collection and Residence Inn) signals an aggressive push for share. The 14 independents, the second-largest group by count, hold 1,052 rooms (12.5% of inventory), led by the Madison Concourse Hotel (373 rooms, the largest in the market) and The Edgewater (202 rooms, a AAA Four Diamond lakefront resort). Radisson Hotel Group and Sonesta International have no hotel in Madison.

Risks and headwinds

Pipeline pressure, 2026 to 2028

The pipeline is measured for Madison's size, but 933 rooms in 7 projects would add 11.1% to inventory. If even half of the proposed projects become shovel-ready, historically likely in a well-capitalized market, 400 to 600 new rooms could open between 2026 and 2028. With that supply concentrated downtown and in the upscale and upper-upscale segment, the 15+ downtown hotels already competing for the highest-rate demand would feel local pressure.

Seasonal swings

A 30-point-plus swing between the summer peak (75%) and the winter trough (43%) strains cash flow for hotels without strong extended-stay demand. November through February is structurally hard, as UW-Madison's winter break cuts institutional and event demand at the same time. Hotels that depend on the university calendar and athletics are the most exposed.

State and university budgets

About 42% of estimated demand (the university and government segments) depends on stable or growing state and UW-Madison spending. Significant cuts to UW-Madison appropriations, state agency operations or travel budgets could hit Madison hotels disproportionately. National enrollment trends bear watching, though UW-Madison has so far been protected by its academic strength and demand for places.

Reliance on Epic visitors

The market depends meaningfully on Epic Systems' visitors. With Epic 10 miles away, hotels in the American Center and East Madison corridors benefit heavily from client training visits, which leaves them exposed if Epic changes how it engages clients, cuts in-person training or moves to virtual-first implementations. A major shift in Epic's approach could hit midweek occupancy across the American Center submarket.

Macro and interest rates

High rates and tight lending may delay or shrink the proposed pipeline, good for existing operators but a sign of investor caution. The 10.2% cap rate, at a ten-year high, reflects both opportunity and the premium investors want for secondary markets. A weaker economy that hits corporate travel, state funding or university programs is a macro headwind.

Outlook and opportunities

2026

The near-term outlook is positive with some upside. Through the third quarter of 2026, occupancy should hold at 60% to 63%, supported by UW-Madison enrollment, Epic's demand and a strong summer events calendar. The Tribute Portfolio's late-2026 opening adds 82 premium rooms on Capitol Square but is too small to move market-wide figures. ADR should stay above $140 for the year, with the summer peak (July and August) and October football driving compression.

2027 and 2028

These are the swing years for supply and demand. If the 366 final-planning rooms start construction in 2026-2027 as expected, the market will absorb a meaningful mid-cycle addition. But the new UW Health facilities and the Wisconsin History Center will open alongside them as new demand generators. The UW Health expansion alone, among the largest healthcare investments in Wisconsin's history, should bring substantial new room nights from visiting physicians, patient families and construction workers through 2028.

Opportunities

• Buying at historically high cap rates. At 10.2%, a ten-year high, cap rates offer compelling entry points for investors willing to underwrite Madison's institutional demand over a 5+ year hold. Economy and midscale hotels trading at or near the $96,400 market average have repositioning upside, especially for operators skilled at brand conversions.
• A Kimpton or boutique lifestyle hotel. Kimpton (IHG) has no Madison hotel despite the city's arts, food and university culture, exactly the guest it targets. A Kimpton or similar boutique on State Street or around Capitol Square would face little direct competition at the boutique upper-upscale level.
• The extended-stay gap. TownePlace Suites (Marriott) and Hyatt House are entirely absent despite strong extended-stay demand from UW Health project workers, Epic training visits and government contractors. A mid-tier extended-stay flag in the American Center or East Madison corridor would serve an underserved guest.
• The Wisconsin History Center halo. The $300M+ museum next to the Tribute Portfolio site will permanently raise foot traffic and cultural tourism on Capitol Square, and hotels within walking distance should benefit for years.
• Capturing UW Health demand. The multi-phase $900M+ expansion will bring 3+ years of patient-family, construction and visiting-physician demand. Extended-stay and upper-midscale hotels on University Avenue and in west Madison are best placed, through corporate accounts with UW Health's procurement team.

Key takeaways

1. Madison is at or above its ten-year ceiling on every measure. ADR of $144.22 is above CoStar's ten-year high of $139.33, RevPAR of $88.90 is exactly at its ceiling, and occupancy of 61.6% is in the upper part of its typical range. All three are improving: occupancy +3.11%, ADR +1.58%, RevPAR +4.74%.
2. Its institutional demand is the deepest of any secondary market in the Upper Midwest. UW-Madison (21,000 employees and 45,000 students), Epic Systems (13,000), UW Health (10,000+), American Family Insurance (12,500) and the state government make a base that is close to recession-proof. No other secondary market in the region, whether Mankato, Green Bay, Appleton or Duluth, comes close.
3. The $900M+ UW Health expansion is a multi-year catalyst through 2028. The University Hospital and East Madison Hospital expansions and the new University Row Medical Center will bring patient families, construction workers and healthcare professionals, partly offsetting the 2026-2028 pipeline.
4. Hilton dominates today, but the pipeline favors Marriott. Hilton has 15 hotels to Marriott's 7, but Marriott's pipeline is the most aggressive: the Tribute Portfolio (under construction), Autograph Collection and Residence Inn (both proposed) add up to 422 rooms. If all three open, Marriott would pass 1,200 branded rooms and challenge Hilton for the most rooms in the market.
5. Sales are back, and cap rates make for good entry points. $48.8M across 8 transactions in twelve months is a real rebound from periods of almost no liquidity. A record $96,400 a room shows growing investor confidence, while a 10.2% cap rate still leaves a meaningful spread over financing costs for sensibly leveraged buyers.

Thinking about a hotel in Madison? Request a hotel valuation, ask for a market report, or download the underwriting model.

Sources and method. All hotel performance figures come from CoStar Group's market report for Madison, WI (report #205885561, April 2, 2026). Brand inventory and room counts come from CoStar property records (Wisconsin hotel data files exported March 2026). Demand estimates are analyst judgment based on public institutional data from UW-Madison, UW Health, Epic Systems, the Greater Madison Chamber of Commerce and the City of Madison, and are indicative rather than audited. Pipeline data come from CoStar and local news. The development tracker was updated April 2, 2026. Values in the trend and monthly charts are read from the report's charts, as noted under each. Prepared by Reed Gizinski, Hotel Data Tracking, Marcus & Millichap.

This report is for information only. It is not an appraisal or a valuation and is not investment advice.