United States -  Minneapolis - St Paul

Local employers, including 15 Fortune 500 companies, as well as the Minneapolis Convention Center, sports venues, 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 effects of the pandemic on this market were severe, and the city's reliance on corporate demand and international travel slowed its recovery. In 2023, occupancy surpassed 57.0%, followed by a minor gain in 2024, but these levels remain significantly below the pre-pandemic occupancy figures of the mid-to-upper 60s. The slow improvements have been driven by an increase in major events, including the Big Ten Basketball tournament, NCAA Frozen Four, and U.S. Olympic Team Trials - Gymnastics. While convention demand was strong in 2024, fewer large conventions were booked for 2025, which has moderately affected ADR thus far in 2025; however, the implementation of additional return-to-office policies has had a positive impact on occupancy. The diversity of demand generators and the popularity of sporting and concert venues in the Minneapolis/St. Paul area are expected to continue to support the market's occupancy recovery.

* 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.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Tanya Pierson, MAI
Senior Managing Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 303 588-6558 (w)