Research Monthly report
South Dakota hotel market update, January 2026
- South Dakota
South Dakota hotels ran 56.38% occupancy at a $121.24 ADR over the last twelve months, RevPAR -0.17%.
South Dakota's hotel market for January 2026 and the 2025 year-end: 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.
Occupancy, trailing 12 months
56.38%
ADR, trailing 12 months
$121.24
RevPAR, trailing 12 months
$68.24
-0.17% year over year
RevPAR, Dec '25 vs Dec '24
+1.0%
Midscale and economy +3.0%
Performance
As we move one month into 2026, all STR data reflects 2025 year-end performance. Based on hotel sales, listings, and underwriting activity across South Dakota over the past year, several clear trends have emerged. The overall statewide hotel performance was relatively unchanged on a trailing twelve-month basis, with RevPAR declining modestly year-over-year, while December results showed slight improvement. Performance varied by scale, with Luxury and Upper Upscale hotels outperforming, posting positive year-over-year RevPAR growth. Upper Midscale hotels delivered relatively flat performance, while Midscale and Economy hotels underperformed overall, recording the largest year-over-year RevPAR declines despite a late-year pickup driven by ADR gains.
Across every South Dakota hotel, the trailing twelve months averaged 56.38% occupancy, a $121.24 ADR and $68.24 RevPAR, with RevPAR -0.17% on the year before.
RevPAR for Dec '25 was +1.0% against Dec '24. Midscale and economy hotels did best at +3.0%; luxury and upper upscale hotels were at -1.1%.
| Scale | T-12 Occ | T-12 ADR | T-12 RevPAR | RevPAR, year over year | RevPAR, Dec '25 vs Dec '24 |
|---|---|---|---|---|---|
| All hotels | 56.38% | $121.24 | $68.24 | -0.17% | +1.0% |
| Luxury & Upper Upscale | 62.00% | $181.72 | $112.66 | +2.85% | -1.1% |
| Upper Midscale | 64.97% | $136.25 | $88.52 | +0.38% | +0.1% |
| Midscale & Economy | 49.51% | $99.97 | $49.50 | -2.9% | +3.0% |
Month by month, South Dakota RevPAR in 2025 against 2024, through December:
All figures are from STR and run a month behind. For a specific market or scale, reach out.
Sales
No hotel sales were reported in South Dakota this month.
Capital markets
| Rate | As of January 30, 2026 |
|---|---|
| Prime rate | 6.75% |
| 10-year Treasury | 4.24% |
| 5-year Treasury | 3.81% |
New developments
Another 14 hotels have been proposed. Call or email to learn more about any of them.
Other developments that bring travelers:
- Proposed Downtown Convention Center (Riverline District), Sioux Falls
- Sioux Falls Regional Airport Expansion (new gates + parking ramp), Sioux Falls
- Sanford Sports Complex & Virtual Care Center Expansion, Sioux Falls
- Mixed-Use "Block 5" (Hotel + Lofts + Retail) Development, Rapid City
- Rapid City Airport Expansion (state-backed), Rapid City area
- Dells Peak Recreational & Outdoor Tourism Investments, Black Hills / Custer, SD
- Sturgis Rally Infrastructure & Events Buildouts, Sturgis, SD
- South Dakota State Fairgrounds & Exposition Upgrades, Huron, SD
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.