The Twin Cities hotel industry has experienced over 80 consecutive months of growth. Occupancy growth has leveled off due to a rapid increase in new room supply, but the big story is that pricing power continues. Year-to-date 2016 Q4 RevPAR (revenue per available room) jumped 5.2% to $83.17, and average daily rate (ADR) climbed 5.5% to $119.62. Smith Travel Research reported that RevPAR and demand levels for U.S. hotels nationally were the highest for any September on record. Investors are still aggressively seeking quality assets and sellers are looking to capitalize on still-solid market fundamentals. However, values have likely peaked and investors may no longer be willing to pay premium prices. That being said, it remains a seller’s market.