The state capital of Wisconsin, Madison, is a thriving, economically versatile hub that supports the technology, education, healthcare, insurance and government sectors, according to an HVS Market Pulse report. Housing such behemoths as the University of Wisconsin-Madison, American Family Insurance and, even more recently, the exponentially growing Epic Systems Corporation has catalyzed downtown development during the last decade.

Traditionally, downtown development in Madison remains in the area surrounding the state Capitol and UW-Madison campus area, but the last couple of years have given rise to more development down the Highway 151/East Washington Avenue corridor, in addition to the area near the Alliant Energy Center.

Although Epic Systems moved to Verona from Madison in 2005, the staggering recruitment efforts of the company, the steady supply of new employees, and ongoing events and training at the Epic campus are continuing to create demand for downtown hotels since demand for hospitality options is outstripping supply in Verona. This demand has permitted hotels to increase rates.

The report states, “However, this has posed a problem for Monona Terrace convention center business. The high rates in the market, as well as the limited number of hotel rooms within walking distance of the convention center, have limited the type of business the convention center can attract. Thus, in recognition of the need for rooms near Monona Terrace, the city offered Judge Doyle Square for hotel development. A 250-room Embassy Suites by Hilton won the project, to be part of a mixed-use development across the street from the convention center. Although this hotel is not expected to break ground until early 2020, upon completion, it should allow the convention center to increase business given the addition of more hotel rooms nearby.”

On the other hand, the Alliant Energy Center campus, which is made up of four different venues, has produced stable demand with niche markets, such as agricultural and equine events. However, as of 2017, several regional groups are collaborating to put together a strategy to modernize the campus, including both renovation and new development, which is supposed to begin in 2021.

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