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Research Monthly report

Minnesota hotel market update, February 2026

  • Minnesota

Minnesota hotels ran 56.67% occupancy at a $134.67 ADR over the last twelve months, RevPAR +1.51%. 1 hotel sold and 9 new hotels are in the works.

Minnesota's hotel market for February 2026: how hotels performed, what sold, where rates stand and what is being built. For a closer look at a specific market or hotel, ask for a report.

Occupancy, trailing 12 months

56.67%

ADR, trailing 12 months

$134.67

RevPAR, trailing 12 months

$76.32

+1.51% year over year

RevPAR, Jan '26 vs Jan '25

+17.40%

Upper midscale +23.37%

Performance

Across every Minnesota hotel, the trailing twelve months averaged 56.67% occupancy, a $134.67 ADR and $76.32 RevPAR, with RevPAR +1.51% on the year before.

RevPAR for Jan '26 was +17.40% against Jan '25. Upper midscale hotels did best at +23.37%; midscale and economy hotels were at +3.38%.

ScaleT-12 OccT-12 ADRT-12 RevPARRevPAR, year over yearRevPAR, Jan '26 vs Jan '25
All hotels56.67%$134.67$76.32+1.51%+17.40%
Luxury & Upper Upscale58.82%$198.15$116.56+0.74%+19.77%
Upper Midscale60.66%$126.65$76.82+1.77%+23.37%
Midscale & Economy51.52%$90.84$46.80+2.30%+3.38%
ADR and RevPAR by scale, trailing 12 months
$0$50$100$150$200All hotelsLuxury & UpperUpscaleUpper MidscaleMidscale & EconomyAll hotels · ADR: $134.67Luxury & Upper Upscale · ADR: $198.15Upper Midscale · ADR: $126.65Midscale & Economy · ADR: $90.84All hotels · RevPAR: $76.32Luxury & Upper Upscale · RevPAR: $116.56Upper Midscale · RevPAR: $76.82Midscale & Economy · RevPAR: $46.80$134.67$198.15$126.65$90.84$76.32$116.56$76.82$46.80$0$50$100$150$200All hotelsLuxury &Upper UpscaleUpperMidscaleMidscale &EconomyAll hotels · ADR: $134.67Luxury & Upper Upscale · ADR: $198.15Upper Midscale · ADR: $126.65Midscale & Economy · ADR: $90.84All hotels · RevPAR: $76.32Luxury & Upper Upscale · RevPAR: $116.56Upper Midscale · RevPAR: $76.82Midscale & Economy · RevPAR: $46.80$134.67$198.15$126.65$90.84$76.32$116.56$76.82$46.80

Source: STR, one-month reporting lag

ADRRevPAR
All hotels$134.67$76.32
Luxury & Upper Upscale$198.15$116.56
Upper Midscale$126.65$76.82
Midscale & Economy$90.84$46.80
RevPAR change by scale
0%5%10%15%20%25%All hotelsLuxury & UpperUpscaleUpper MidscaleMidscale & EconomyAll hotels · Trailing 12 months: 1.51%Luxury & Upper Upscale · Trailing 12 months: 0.74%Upper Midscale · Trailing 12 months: 1.77%Midscale & Economy · Trailing 12 months: 2.30%All hotels · Jan '26 vs. Jan '25: 17.40%Luxury & Upper Upscale · Jan '26 vs. Jan '25: 19.77%Upper Midscale · Jan '26 vs. Jan '25: 23.37%Midscale & Economy · Jan '26 vs. Jan '25: 3.38%1.51%0.74%1.77%2.30%17.40%19.77%23.37%3.38%0%10%20%30%All hotelsLuxury &Upper UpscaleUpperMidscaleMidscale &EconomyAll hotels · Trailing 12 months: 1.51%Luxury & Upper Upscale · Trailing 12 months: 0.74%Upper Midscale · Trailing 12 months: 1.77%Midscale & Economy · Trailing 12 months: 2.30%All hotels · Jan '26 vs. Jan '25: 17.40%Luxury & Upper Upscale · Jan '26 vs. Jan '25: 19.77%Upper Midscale · Jan '26 vs. Jan '25: 23.37%Midscale & Economy · Jan '26 vs. Jan '25: 3.38%1.51%0.74%1.77%2.30%17.40%19.77%23.37%3.38%

Source: STR, one-month reporting lag

Trailing 12 monthsJan '26 vs. Jan '25
All hotels1.51%17.40%
Luxury & Upper Upscale0.74%19.77%
Upper Midscale1.77%23.37%
Midscale & Economy2.30%3.38%

Month by month, Minnesota RevPAR in 2026 against 2025, through January:

RevPAR by month, 2025 and 2026
$0$25$50$75$100$125JanFebMarAprMayJunJulAugSepOctNovDecJan · 2025: $49.2Feb · 2025: $57.8Mar · 2025: $62.3Apr · 2025: $68.3May · 2025: $77.3Jun · 2025: $95.3Jul · 2025: $103.7Aug · 2025: $99.1Sep · 2025: $91.1Oct · 2025: $86.7Nov · 2025: $60.6Dec · 2025: $54.1Jan · 2026: $57.8$0$50$100$150JanMarMayJulSepNovJan · 2025: $49.2Feb · 2025: $57.8Mar · 2025: $62.3Apr · 2025: $68.3May · 2025: $77.3Jun · 2025: $95.3Jul · 2025: $103.7Aug · 2025: $99.1Sep · 2025: $91.1Oct · 2025: $86.7Nov · 2025: $60.6Dec · 2025: $54.1Jan · 2026: $57.8

values read from the CoStar chart in the original email

Source: CoStar, as of February 27, 2026

20252026
Jan$49.2$57.8
Feb$57.8
Mar$62.3
Apr$68.3
May$77.3
Jun$95.3
Jul$103.7
Aug$99.1
Sep$91.1
Oct$86.7
Nov$60.6
Dec$54.1

All figures are from STR and run a month behind. For a specific market or scale, reach out.

Sales

HotelCityPriceNote
Country Inn & Suites Fergus FallsFergus Falls$4,600,000

Sale prices come from public records and may not include capital allocated to FF&E or goodwill. Want to know more about one of these sales? Get in touch.

Capital markets

RateAs of February 27, 2026
Prime rate6.75%
10-year Treasury3.981%
5-year Treasury3.536%

New developments

This month's new hotels and sales
Fergus FallsSartellAlexandriaMankatoMountain LakeDuluthMonticelloMinneapolisMinnesotaFergus FallsSartellAlexandriaMankatoMountain LakeDuluthMonticelloMinneapolisNDSDWIFergus FallsSartellAlexandriaMankatoMountain LakeDuluthMonticelloMinneapolisMinnesotaFergus FallsSartellAlexandriaMankatoMountain LakeDuluthMonticelloMinneapolis

Boundaries, roads and water: U.S. Census Bureau (TIGER/Line).

New hotels in Minnesota:

  • Wyndham Garden, Sartell
  • Holiday Inn Express, Alexandria
  • Candlewood Suites, Mankato East: just opened
  • AmericInn, Mountain Lake
  • The Lakeview Guesthouse, Duluth
  • Fairfield Inn & Suites, Monticello
  • The West Hotel, Minneapolis North Loop
  • Element, Mankato
  • AC Hotel, Mankato

Another 31 hotels have been proposed. Call or email to learn more about any of them.

Other developments that bring travelers:

  • Meta Hyperscale Data Center, Rosemount, MN (one of the largest known data center builds in the state)
  • Apple Valley Technology Park (Proposed Data Center Campus), Apple Valley, MN (large multi-building data center proposal)
  • Rural Minnesota $4B Data Center + Wind/Solar/Battery Project, Southwestern MN (plan for massive tech/energy campus)
  • Downtown Minneapolis Data Center Repurposing, Minneapolis, MN (planned data center conversion project)
  • Metro Blue Line Transit Extension, Hennepin County / Minneapolis Region (major transit infrastructure, ridership growth catalyst)

Tools

Thinking about what your hotel would sell for? Request a valuation.

More research