Back to today’s briefing

Story perspectives

Minneapolis Hotel Construction Hits Decade Low Amid Rising Rates

6/24/2025

49 9

Summary

Story summary

In early 2025, hotel construction in the Minneapolis–St. Paul metro dropped below 250 rooms, the lowest since 2010.
Occupancy rates are projected to increase to 59.4%, with average daily rates (ADR) reaching a record $136.18.
Revenue per available room (RevPAR) is expected to rise to $80.92, fueled by downtown Minneapolis growth.
Investment sentiment remains positive despite ongoing market fluctuations.

1 of 1

Story summary

In early 2025, hotel construction in the Minneapolis–St. Paul metro dropped below 250 rooms, the lowest since 2010.
Occupancy rates are projected to increase to 59.4%, with average daily rates (ADR) reaching a record $136.18.
Revenue per available room (RevPAR) is expected to rise to $80.92, fueled by downtown Minneapolis growth.
Investment sentiment remains positive despite ongoing market fluctuations.