Middleton hotel managers report thinner future group bookings; staff presents STAR report and budget context

Hotel representatives and city staff briefed the Middleton Tourism Commission on market conditions and the STAR report during the Nov. 18 meeting.

Hotel updates: A hotel representative said a recent convention over a football weekend did not sell out and flagged broader market pressure from roughly 550–600 new hotel rooms that opened nearby. The representative said the company’s future group booking pace is around 29% of target (compared with an expected 60–70% by this point), and that the management portfolio has seen increased owner requests and uncertainty about rates and contracts.

"Right now, we're sitting at 29%, which is pretty terrifying," the hotel representative said, describing a drop in group pace that could affect 2026 and beyond if the trend continues.

STAR report and budget briefing: Staff presented the STAR performance metrics for October: occupancy was up 1.8% from last October but down 2.1% year-to-date; average daily rate (ADR) was up 2.1% from last October; revenue was up 3.9% versus last October. Staff reported year-to-date revenue of $1,259,057 and noted about $3 million in the tourism fund balance, which could support a discussion about hiring a fourth staff member or reallocating funds into strategic campaigns (staff already allocated an additional $10,000 toward meeting-convention advertising).

Staff also noted that the three-year Destination Madison contract is approaching renewal and that the commission should enter renewal discussions with a unified view of expectations and deliverables.

Next steps: Staff and commissioners said they will continue monitoring booking windows and revenue pace and consider strategic plan items (including potential new hire(s) and outreach spending) as they finalize next year’s budget.