Midwest Region Hotel Development, Construction & Transactions

Hotel development across the Midwest Region is anchored by several large-scale convention and mixed-use projects in major cities, supported by steady select-service growth in secondary and tertiary markets. Lodging Development currently tracks 245 projects totaling 32,729 rooms in various stages of planning and construction throughout the region. Transaction activity has been substantial, with 185 hotel sales recorded over the most recent 18-month tracking window. Recent openings also reflect broad geographic distribution, with 113 hotels delivering more than 13,600 rooms over the past 24 months.

Among the projects currently tracked by Lodging Development in the Midwest Region, the largest include the 814-room Signia by Hilton Indianapolis, which is under construction adjacent to the Indianapolis Convention Center, and the 600-room JW Marriott Detroit Water Square, a luxury hotel also in construction and being developed by Sterling Group. In Detroit, Sterling Group is additionally behind the 600-room Huntington Place Hotel, currently in early planning. In Chicago, Magellan Development Group's Lakeshore East Parcel O Hotel & Residence, a 269-room upscale property, has reached final planning.

The region's pipeline is led by upper midscale and upscale projects, which together account for 128 of the 245 tracked developments. Upper upscale properties represent another 40 projects, while six luxury developments contribute 1,268 rooms. Midscale and economy projects round out the pipeline with 23 additional hotels.

The Midwest Region has seen 113 hotel openings totaling 13,628 rooms over the past 24 months. Among the most recent, the 139-room Residence Inn Ann Arbor South and the 100-room SpringHill Suites Madison Fitchburg both opened in early May 2026, joined by the 100-room Hampton Inn East Peoria. In February 2026, the 219-room dual-branded Home2 Suites and Tru by Hilton Madison East was among the largest openings during the period. The 139-room AC Hotel Ann Arbor Downtown and the 128-room Hotel Rambler Montgomery, a Tapestry Collection property, also opened in early 2026, reflecting continued demand for upscale and upper upscale products across the region.

Lodging Development tracked 185 hotel transactions in the Midwest Region over the 18-month period ending in late November 2025. Based on documented sale prices and loan data, Lodging Development estimates total transaction volume at approximately $2.39 billion during this window. This figure incorporates actual sale prices where available across 62 transactions and values derived from recorded loan amounts for an additional 67 transactions, applying an 80% loan-to-value ratio based on national hotel transaction data. An additional 56 transactions lacked sufficient data to include in the volume estimate, suggesting the true total is likely higher.

Notable transactions during the period included the sale of the 21c Museum Hotel Cincinnati, a luxury property, in late October 2025. T2 Hospitality acquired the 268-room Le Meridien St. Louis Clayton in October 2025, while Paul G Smith Associates purchased the 137-room Surety Hotel Des Moines, an Autograph Collection property, in September 2025.