IRR-Minneapolis Mid-Year Viewpoint 2015 Local Market Report - Lodging
The lodging market remains healthy in Minneapolis/St. Paul in 2015. Room demand is steady from corporate business and leisure travelers in all segments of the market.
There is a total of about 35,000 rooms in the metro area, split almost evenly between full-service and limited service properties. Occupancy in the full-service sector is near 73%, while occupancy in the limited service sector is about 66%. Both are considered healthy occupancy levels, and both should increase slightly even after the anticipated increase in inventory.
Construction is proceeding on two full-service hotels at or near the Mall of America, and two other limited service hotels are under construction or planned. The primary driver of this construction is the Mall of America Phase 2 expansion, which is underway. Suburban hotel development has been relatively slow, but a 100 room hotel has been proposed for west Bloomington, and two 100+ room hotels are proposed on or near the State Farm redevelopment site in Woodbury. The former Plymouth office building in downtown Minneapolis is in the process of being converted to a 270-room Conrad full-service hotel. The City of Minneapolis has also conducted a feasibility study for a new 1,000-room hotel to enhance convention business in downtown Minneapolis, but no plans have been announced.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.