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. ADR, on the other hand, reached nearly $130 in 2023 and increased modestly in 2024. While convention demand was strong in 2024, fewer large conventions are planned for 2025, which will likely affect the performance metrics for the year. The long-term outlook, however, remains optimistic given the lack of new lodging supply, diversity of employers, and changes in remote-work policies, bolstered by a variety of special events, concerts, and leisure attractions that should draw demand.
* 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
|
|
|
|
| Hotel Occupancy Increase/Decrease
|
|
|
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| RevPAR Change
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0.0%
|
0.0%
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0.0%
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| Market Supply Growth
|
Change In Value For Market:
Legend
| Significant Value Increase:
|
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 |
$
|
| 2025 (f) |
$
|
| 2026 (f) |
$
|
| 2027 (f) |
$
|
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