Minneapolis-St. Paul Hospitality Market Report

Convention activity offers a bright spot as occupancy holds below pre-2020 norms. Hotel bookings in Minneapolis-St. Paul have been slow to recover from pandemic-era disruptions. In particular, occupancy in the CBD has stayed well-below its 2019 mark as business travel has shifted more to the suburbs, with companies following employee housing preferences. Still, activity at the Minneapolis Convention Center this year will likely provide some tailwinds to urban core properties. The Twin Cities will host the 2024 U.S. Olympic Team Trials — Gymnastics at the convention center, which is drawing other events like the USA Gymnastics National Congress & Trade Show and the 2024 USA Gymnastics for All National Championships & GymFest. Air traffic through Minneapolis-St. Paul International Airport was also up 11 percent year-over-year in 2023, less than 5 million passengers shy of the transportation hub’s all-time record from 2019. Increasing airport traffic in 2024 will aid the surrounding Bloomington submarket, keeping the area as the only hospitality submarket in the Twin Cities to achieve occupancy over 65 percent.