Minneapolis-St. Paul Hospitality Market Report

Modest tailwinds facilitate gradual improvement. Metro occupancy is forecast to rise by one of the largest margins among major U.S. markets in 2026. Even so, the metro’s post-pandemic recovery has been slow. Heading into 2026, occupancy remained roughly 790 basis points below the 2014-2019 average, compared to 310 basis points at the national level. With limited large-scale leisure catalysts beyond the Special Olympics USA Games and WWE SummerSlam, demand growth remains anchored to corporate travel, where sentiment is cautiously optimistic ahead of a busy schedule of group conferences. Additionally, record international travel into Minneapolis-St. Paul International Airport last year suggests potential upside for airport-oriented nodes such as Bloomington, where occupancy is projected to rise 80 basis points. At the segment level, select-service hotels may benefit from restrained competitive pressure after two consecutive years of net inventory reduction and minimal projected supply growth in 2026, supporting occupancy gains.