Meet Minneapolis, the city's convention and visitors association, has launched a task force to study the city's hotel market as part of an effort to attract more convention business.
“This is an important next step for us,” said Meet Minneapolis Board Chair Peter Mihajlov, in a prepared statement. “We know that we aren’t currently competitive in terms of attracting the largest events, the ones that require 3,000 or more hotel rooms at peak. We’ve asked the task force to ‘fill in the blanks’ by first determining where our best opportunities are for growth. Is it in the 700-peak room segment we’re currently competing in? Or is it in the 2,000-peak room range or even the 3,000-peak room range?"
Meet Minneapolis has also released a feasibility study examining the viability of a 1,000-room hotel near the Minneapolis Convention Center.
According to the study by consultant Convention, Sports & Leisure International, or CSL, a hotel of that size would cost an estimated $304.5 million and require public subsidies to make it economically viable.
The study also found that the city would benefit from the hotel to attract new convention and tradeshow business. A new 1,000-room hotel would have a negative impact on other nearby downtown hotels in the short term, according to the study. But in the long run, hotels would benefit from the additional business at the convention center.
“Outside of New York and Las Vegas, ‘headquarter hotels’ of this sort require some level of public investment,” said John Kaatz, Principal, CSL, in a prepared statement. “All of the recent projects of this type have had a public component, a few are entirely owned by a public entity. Minneapolis actually has a strong and successful record in this area, most recently in supporting the construction of the Hilton Hotel in the 1990s. The city’s investment there made the hotel possible and actually earned a profit for the city.”
There are 16 hotels within a half mile of the convention center. The following is a list of the hotels ranked by size, which was included in the feasibility study.
1 – Hilton Minneapolis (821 rooms)
2 – Marriott City Center (583)
3 – Hyatt Regency (533)
4 – Radisson Plaza Hotel (360)
5 – Millennium Hotel (321)
6 –Marquette (281)
7 – DoubleTree Guest Suites (229)
8 – W Hotel – The Foshay (229)
9 – Crowne Plaza (222)
10 – Hyatt Place (213)
11 – The Westin (214)
12 – Best Western Normandy Inn & Suites (199)
13 – The Grand Hotel (140)
14 – Hotel Ivy (136)
15 – Residence Inn Minneapolis (124)
16 – Hilton Garden Inn Minneapolis (210)