Research Monthly report
North Dakota hotel market update, November 2025
- North Dakota
North Dakota's hotel market remains soft, with 12-month occupancy at 55.5% and RevPAR down 1.6% year-over-year, driven by a 4.6% decline in occupancy, even as ADR grew 3.2%. 2 hotels sold.
North Dakota'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
North Dakota's hotel market remains soft, with 12-month occupancy at 55.5% and RevPAR down 1.6% year-over-year, driven by a 4.6% decline in occupancy, even as ADR grew 3.2%. Demand has contracted across all classes, and the state continues to see no new hotels under construction, with only one property (128 rooms) delivered in the past year. Despite the muted performance, transaction activity has been steady: 17 hotels traded over the past 12 months totaling $63.3M, with an average price per room of $44,848 and a market cap rate of 13.9%, notably above the national average of 9.5%. Sales remain heavily concentrated in the Midscale & Economy and Upper Midscale segments, reflecting the state's workforce-driven demand profile. With limited new supply and stable pricing, the market is expected to remain relatively balanced, though performance growth will depend on improvements in oil activity and broader economic momentum.
Sales
| Hotel | City | Price | Note |
|---|---|---|---|
| Four Points Fargo | Fargo | $10,200,000 | |
| Fargo Airpot Inn Fargo | Fargo | $1,759,000 |
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).
Other developments that bring travelers:
- Bakken East Natural Gas Pipeline, Statewide (Western ND → Fargo/Mapleton corridor)
- Applied Digital "Polaris Forge 2" AI Data Center Campus, Harwood (near Fargo)
- Applied Digital Data Center Expansion, Ellendale / Southeastern ND
- Statewide Energy & Industrial Project Buildout (~$4B), Multiple ND Counties
- Renewable Energy / Wind Projects, Various Counties across
- ND (planned wind-farm buildouts)
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.