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Explore Minnesota: new numbers show pandemic's toll on hospitality industry

Compared to this time last year, revenue per room is down 50 percent
Hotel

Minnesota's tourism office has unveiled the final numbers showing the loss hotels contended with during the pandemic so far. 

The metro area has been hit substantially harder than greater Minnesota, data from Explore Minnesota shows, with Minneapolis being the most impacted. Greater Minnesota overall experienced smaller declines than the Twin Cities for each lodging metric.

The biggest monthly declines on record came in April, with occupancy down 41 percent and revenue per available room down 51.4 percent statewide. 

"Minnesota's strong room supply growth continues to negatively impact other metrics," Explore Minnesota said.

"Unlike most other states, Minnesota continues to experience a net increase in available rooms, leaving more properties to compete for the business of a much smaller pool of hotel guests during the pandemic."

Minnesota was one of 10 states that tracked positive room supply growth in the first half of 2020, tied for the highest growth rate at 1.1 percent. 

Here are the year-over-year changes so far according to six lodging metrics: 

  • Occupancy -41 percent 
  • Room supply 1.1 percent 
  • Demand -40.3 percent 
  • Revenue -50.8 percent 
  • Room rate –17.6 percent 
  • Revenue per available room (RevPAR) –51.4 percent  

The comparison between this time of year in 2019 from 2018 were:  

  • Occupancy: -1.4 percent  
  • Room supply: 2.6 percent 
  • Demand: 1.1 percent 
  • Revenue: -1.2 percent 
  • Room rate: -2.3 percent 
  • Revenue per room: -3.7 percent 

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