Research Monthly report
Minnesota hotel market update, November 2025
- Minnesota
Hotel performance across Minnesota and the Minneapolis metro continues to show modest improvement driven primarily by occupancy gains, with statewide RevPAR up 2.2% year-over-year and Minneapolis RevPAR up 0.6%, despite ADR softening slightly in the metro. 4 hotels sold and 7 new hotels are in the works.
Minnesota's hotel market for November 2025: 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.
Performance
Hotel performance across Minnesota and the Minneapolis metro continues to show modest improvement driven primarily by occupancy gains, with statewide RevPAR up 2.2% year-over-year and Minneapolis RevPAR up 0.6%, despite ADR softening slightly in the metro. Minnesota's broader market posted 52.5% occupancy, $134 ADR, and $70 RevPAR, while Minneapolis outperformed with 59.4% occupancy, $133 ADR, and $79 RevPAR. Occupancy increased in both markets (+0.1% statewide, +2.3% in Minneapolis), supported by steady corporate and group demand, while ADR declined 1.7% in Minneapolis but rose 2.0% statewide. Development remains historically low, with only a handful of hotels under construction, helping prevent supply pressure as demand continues to normalize.
Sales
| Hotel | City | Price | Note |
|---|---|---|---|
| La Quinta Duluth | Duluth | $11,250,000 | |
| Sleep Inn Duluth | Duluth | $3,500,000 | |
| Baymont Glenwood | Glenwood | - | Part of a 40-hotel portfolio |
| GrandStay Faribault | Faribault | $2,700,000 |
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 November 30, 2025 |
|---|---|
| Prime rate | 7% |
| 10-year Treasury | 4.088% |
| 5-year Treasury | 3.66% |
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
Other developments that bring travelers:
- Niron Magnetics Plant, Sartell
- Mystic Lake Amphitheater, Shakopee
- University of St. Thomas, New Arena in St. Paul (Lee & Penny Anderson Arena)
- Mayo Clinic Expansion, Rochester
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.