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Research Monthly report

Minnesota hotel market update, March 2026

Reed Gizinski · hotel broker, Ruzicka Hotel Team at Marcus & Millichap

  • Minnesota

Minnesota hotels ran 57.13% occupancy at a $134.13 ADR over the last twelve months, RevPAR +2.26%. 5 hotels sold and 8 new hotels are in the works.

Minnesota's hotel market for March 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

57.13%

ADR, trailing 12 months

$134.13

RevPAR, trailing 12 months

$76.62

+2.26% year over year

RevPAR, Feb '26 vs Feb '25

+8.26%

Upper midscale +10.15%

Performance

Across every Minnesota hotel, the trailing twelve months averaged 57.13% occupancy, a $134.13 ADR and $76.62 RevPAR, with RevPAR +2.26% on the year before.

RevPAR for Feb '26 was +8.26% against Feb '25. Upper midscale hotels did best at +10.15%; midscale and economy hotels were at +0.01%.

ScaleT-12 OccT-12 ADRT-12 RevPARRevPAR, year over yearRevPAR, Feb '26 vs Feb '25
All hotels57.13%$134.13$76.62+2.26%+8.26%
Luxury & Upper Upscale58.74%$197.53$116.03+0.35%+2.92%
Upper Midscale60.48%$129.46$78.29+2.36%+10.15%
Midscale & Economy50.48%$92.39$46.64+2.30%+0.01%
ADR and RevPAR by scale, trailing 12 months
$0$50$100$150$200All hotelsLuxury & UpperUpscaleUpper MidscaleMidscale & EconomyAll hotels · ADR: $134.13Luxury & Upper Upscale · ADR: $197.53Upper Midscale · ADR: $129.46Midscale & Economy · ADR: $92.39All hotels · RevPAR: $76.62Luxury & Upper Upscale · RevPAR: $116.03Upper Midscale · RevPAR: $78.29Midscale & Economy · RevPAR: $46.64$134.13$197.53$129.46$92.39$76.62$116.03$78.29$46.64$0$50$100$150$200All hotelsLuxury &Upper UpscaleUpperMidscaleMidscale &EconomyAll hotels · ADR: $134.13Luxury & Upper Upscale · ADR: $197.53Upper Midscale · ADR: $129.46Midscale & Economy · ADR: $92.39All hotels · RevPAR: $76.62Luxury & Upper Upscale · RevPAR: $116.03Upper Midscale · RevPAR: $78.29Midscale & Economy · RevPAR: $46.64$134.13$197.53$129.46$92.39$76.62$116.03$78.29$46.64

Source: STR, one-month reporting lag

ADRRevPAR
All hotels$134.13$76.62
Luxury & Upper Upscale$197.53$116.03
Upper Midscale$129.46$78.29
Midscale & Economy$92.39$46.64
RevPAR change by scale
0%2.5%5%7.5%10%12.5%All hotelsLuxury & UpperUpscaleUpper MidscaleMidscale & EconomyAll hotels · Trailing 12 months: 2.26%Luxury & Upper Upscale · Trailing 12 months: 0.35%Upper Midscale · Trailing 12 months: 2.36%Midscale & Economy · Trailing 12 months: 2.30%All hotels · Feb '26 vs. Feb '25: 8.26%Luxury & Upper Upscale · Feb '26 vs. Feb '25: 2.92%Upper Midscale · Feb '26 vs. Feb '25: 10.15%Midscale & Economy · Feb '26 vs. Feb '25: 0.01%2.26%0.35%2.36%2.30%8.26%2.92%10.15%0.01%0%5%10%15%All hotelsLuxury &Upper UpscaleUpperMidscaleMidscale &EconomyAll hotels · Trailing 12 months: 2.26%Luxury & Upper Upscale · Trailing 12 months: 0.35%Upper Midscale · Trailing 12 months: 2.36%Midscale & Economy · Trailing 12 months: 2.30%All hotels · Feb '26 vs. Feb '25: 8.26%Luxury & Upper Upscale · Feb '26 vs. Feb '25: 2.92%Upper Midscale · Feb '26 vs. Feb '25: 10.15%Midscale & Economy · Feb '26 vs. Feb '25: 0.01%2.26%0.35%2.36%2.30%8.26%2.92%10.15%0.01%

Source: STR, one-month reporting lag

Trailing 12 monthsFeb '26 vs. Feb '25
All hotels2.26%8.26%
Luxury & Upper Upscale0.35%2.92%
Upper Midscale2.36%10.15%
Midscale & Economy2.30%0.01%

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

RevPAR by month, 2025 and 2026
$0$25$50$75$100$125JanFebMarAprMayJunJulAugSepOctNovDecJan · 2025: $49.0Feb · 2025: $56.7Mar · 2025: $61.0Apr · 2025: $68.1May · 2025: $78.2Jun · 2025: $96.1Jul · 2025: $103.4Aug · 2025: $99.5Sep · 2025: $91.4Oct · 2025: $86.9Nov · 2025: $60.1Dec · 2025: $53.7Jan · 2026: $59.0Feb · 2026: $61.4$0$50$100$150JanMarMayJulSepNovJan · 2025: $49.0Feb · 2025: $56.7Mar · 2025: $61.0Apr · 2025: $68.1May · 2025: $78.2Jun · 2025: $96.1Jul · 2025: $103.4Aug · 2025: $99.5Sep · 2025: $91.4Oct · 2025: $86.9Nov · 2025: $60.1Dec · 2025: $53.7Jan · 2026: $59.0Feb · 2026: $61.4

values read from the CoStar chart in the original email

Source: CoStar, as of March 27, 2026

20252026
Jan$49.0$59.0
Feb$56.7$61.4
Mar$61.0
Apr$68.1
May$78.2
Jun$96.1
Jul$103.4
Aug$99.5
Sep$91.4
Oct$86.9
Nov$60.1
Dec$53.7

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

Sales

HotelCityPriceNote
Studio 6 (Former Extended Stay America) EaganEagan-Part of a 30-property portfolio, 3384 Norwest Ct
Studio 6 (Former Extended Stay America) EaganEagan-Part of a 30-property portfolio, 3015 Denmark Ave
The Hudson Inn MorrisMorris$2,530,000
SpringHill Suites BloomingtonBloomington$10,880,000Part of a 2-property portfolio
Hampton BloomingtonBloomington$9,450,000Part of a 2-property portfolio

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 March 30, 2026
Prime rate6.75%
10-year Treasury4.346%
5-year Treasury3.976%

New developments

This month's new hotels and sales
EaganMorrisBloomingtonSartellAlexandriaMountain LakeDuluthMonticelloMinneapolisMankatoMinnesotaEaganMorrisBloomingtonSartellAlexandriaMountain LakeDuluthMonticelloMankatoNDSDWIEaganMorrisBloomingtonSartellAlexandriaMountain LakeDuluthMonticelloMinneapolisMankatoMinnesotaEaganMorrisBloomingtonSartellAlexandriaMountain LakeDuluthMonticelloMankato

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

New hotels in Minnesota:

  • Wyndham Garden, Sartell
  • Holiday Inn Express, Alexandria
  • 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.

Tools

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