Upper Midwest Hospitality Investment Forecast
Major Events Amplify Demand Across Urban Markets, Replenishing Buyer Pool
Trio of metros lift regional hotel fundamentals. The Upper Midwest registered a nearly 1,300-basis-point improvement in occupancy last year; regional hotel demand and performance metrics, however, remain well below pre-pandemic marks entering 2022. This situation is largely the result of conditions in the region’s primary metros, which account for the bulk of hotel inventory. Across Chicago, Minneapolis-St. Paul and Milwaukee, a reduced number of major events during 2021 hindered the recovery of local hospitality sectors. Conditions in these markets overshadowed performance in South Dakota, where a rise in visitorship at national parks pushed hotel fundamentals beyond pre-pandemic figures. Moving forward, the region’s trio of major metros are poised to record boosts in tourism and overnight stays, as sizable spring and summertime events are held at area venues and convention centers. This improvement will support one of the largest increases in hotel demand across U.S. regions.