Minneapolis-St. Paul Hospitality Market Report

Slow but steady improvement shapes the market landscape. Metrowide occupancy reached 58.8 percent in 2024 — still well below pre-pandemic levels — yet there are emerging bright spots. Bloomington stands out, having maintained the highest occupancy rate since 2022 by capitalizing on airport proximity, the Mall of America and virtually no construction over the past five years. Infrastructure investments such as the METRO Gold Line and B Line will also improve regional connectivity in the area. Elsewhere, corporate departures from the downtown core continue to weigh on weekday business travel, tempering broader recovery. Metrowide, elevated borrowing costs and regulatory challenges have kept hotel construction at its lowest point in over a decade. The limited number of new rooms added in 2025 will support a nearly 2 percent RevPAR increase. Although this gain stems from a balance of demand and ADR improvements, the market remains unlikely to recapture pre-2020 occupancy levels in the near term, signaling a measured rebound for the Twin Cities’ hospitality sector.