Research Monthly report
Minnesota hotel market update, January 2026
- Minnesota
Minnesota hotels ran 56.82% occupancy at a $132.43 ADR over the last twelve months, RevPAR +0.9%. 3 hotels sold and 7 new hotels are in the works.
Minnesota's hotel market for January 2026 and the 2025 year-end: 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
56.82%
ADR, trailing 12 months
$132.43
RevPAR, trailing 12 months
$75.25
+0.9% year over year
RevPAR, Dec '25 vs Dec '24
+1.5%
Upper midscale +3.3%
Performance
As we move one month into 2026, all STR data reflects 2025 year-end performance. Based on hotel sales, listings, and underwriting activity over the past year, several clear trends have emerged. RevPAR growth varied meaningfully by scale, with a notable divergence across segments. Statewide metrics reflect performance across all STR-reporting hotels in Minnesota. However, the majority of RevPAR growth was concentrated in the Midscale and Economy segments. In contrast, Luxury and Upper Upscale hotels underperformed overall in terms of RevPAR, despite being the only segment to achieve ADR growth.
Across every Minnesota hotel, the trailing twelve months averaged 56.82% occupancy, a $132.43 ADR and $75.25 RevPAR, with RevPAR +0.9% on the year before.
RevPAR for Dec '25 was +1.5% against Dec '24. Upper midscale hotels did best at +3.3%; luxury and upper upscale hotels were at -2.2%.
| Scale | T-12 Occ | T-12 ADR | T-12 RevPAR | RevPAR, year over year | RevPAR, Dec '25 vs Dec '24 |
|---|---|---|---|---|---|
| All hotels | 56.82% | $132.43 | $75.25 | +0.9% | +1.5% |
| Luxury & Upper Upscale | 58.57% | $197.13 | $115.45 | +0.14% | -2.2% |
| Upper Midscale | 59.66% | $127.89 | $76.3 | +0.32% | +3.3% |
| Midscale & Economy | 51.34% | $90.74 | $46.59 | +2.42% | +1.2% |
Month by month, Minnesota RevPAR in 2025 against 2024, through December:
All figures are from STR and run a month behind. For a specific market or scale, reach out.
Sales
| Hotel | City | Price | Note |
|---|---|---|---|
| GrandStay Delano | Delano | $5,150,000 | |
| Extended Stay America Maple Grove | Maple Grove | $4,160,000 | |
| Extended Stay America Woodbury | Woodbury | $4,160,000 |
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
| Rate | As of January 30, 2026 |
|---|---|
| Prime rate | 6.75% |
| 10-year Treasury | 4.24% |
| 5-year Treasury | 3.81% |
New developments
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
- Clyde Hotel, Duluth
- The Lakeview Guesthouse, Duluth
- Fairfield Inn & Suites, Monticello
- The West Hotel, Minneapolis North Loop
Another 33 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
- Full hotel underwriting and waterfall model. Download the Excel model free. Questions or changes you'd recommend are welcome.
- A report on your hotel or market. Ask for one and we'll be in touch.
Thinking about what your hotel would sell for? Request a valuation.