Local employers, including 15 Fortune 500 companies, as well as the Minneapolis Convention Center and the Mall of America, represent the primary sources of demand for the greater Minneapolis-St. Paul market. The most significant corporate demand generators include Target, Medtronic, US Bank, Cargill, 3M, Wells Fargo, UnitedHealth Group, and Best Buy. The Ryder Cup of 2015 and 2018's Super Bowl were highlights during the last decade; however, the effects of the pandemic were severe. The city's particular reliance on the meeting/group segment and international travel slowed its recovery. Over the last two decades, Minneapolis tended to enjoy occupancies in the mid-to-upper 60s during stronger economic periods. In 2023, occupancy did not quite reach the 60.0% mark, reflecting continued challenges. Factors contributing to the 2023 performance levels included an increase in citywide events and major concerts; however, the lack of return-to-office requirements for many large corporations affected occupancy. ADR, on the other hand, reached nearly $130 in 2023, reflecting an all-time high. The outlook for 2024 remains favorable, with a large number of conventions and sporting events on the books, including the NCAA Frozen Four and U.S. Olympic Gymnastics Trials. The long-term outlook is optimistic given the diversity of employers and variety of leisure attractions.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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|
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| ADR Change
|
|
|
|
| Market Demand Change
|
|
|
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| Hotel Occupancy Increase/Decrease
|
|
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| RevPAR Change
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0.0%
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
Legend
| Significant Value Increase:
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Greater than +10%
|
| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Minneapolis - St Paul RevPAR Change
Minneapolis - St Paul RevPAR
| Year |
RevPAR |
| 2008 |
$62.75
|
| 2009 |
$50.69
|
| 2010 |
$55.06
|
| 2011 |
$60.91
|
| 2012 |
$63.00
|
| 2013 |
$67.46
|
| 2014 |
$72.53
|
| 2015 |
$76.71
|
| 2016 |
$80.61
|
| 2017 |
$77.59
|
| 2018 |
$79.93
|
| 2019 |
$80.31
|
| 2020 |
$82.32
|
| 2021 |
$
|
| 2022 |
$
|
| 2023 |
$
|
| 2024 (f) |
$
|
| 2025 (f) |
$
|
| 2026 (f) |
$
|
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