Research Monthly report
South Dakota hotel market update, November 2025
- South Dakota
South Dakota's hotel market remains stable but subdued, with 12- month occupancy at 55.7%, ADR at $122, and RevPAR at $68 as year-over-year RevPAR performance holds flat. 1 hotel sold.
South 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
South Dakota's hotel market remains stable but subdued, with 12- month occupancy at 55.7%, ADR at $122, and RevPAR at $68 as year-over-year RevPAR performance holds flat. Demand softened slightly over the past 12 months (-3.2% occupancy change), though ADR continued to rise (+3.4%), helping offset weaker shoulder-season activity. Only 423 rooms have delivered in the past year - a historically low supply pipeline that helps limit near-term competitive pressure. Sales velocity remains muted, with just 8 trades totaling $20.1M over the past 12 months, well below the three-year average of $48.4M, and market cap rates averaging 10.9%, above the national benchmark. Overall, the market continues to normalize gradually, supported by steady leisure demand and exceptionally limited new supply.
Sales
| Hotel | City | Price | Note |
|---|---|---|---|
| Travelodge Edgemont | Edgemont | - | Part of a 40-hotel portfolio |
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 | 3.655% |
New developments
Boundaries, roads and water: U.S. Census Bureau (TIGER/Line).
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
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.