Midwest Region Hotel Development, Construction & Transactions

The Midwest Region encompasses Illinois, Indiana, Michigan, Ohio, Wisconsin, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, and South Dakota — a broad territory where convention-driven urban cores, university towns, and leisure destinations each contribute to sustained hotel investment. Lodging Development currently tracks 239 development projects totaling 31,577 rooms across the region, alongside 110 recent openings and 195 transactions recorded over the past 18 months. Major metros including Chicago, Indianapolis, and Detroit anchor much of the large-scale activity, while smaller markets across the Plains and Upper Midwest continue to add select-service supply.

Among the projects currently tracked by Lodging Development in the Midwest, upscale and upper midscale hotels dominate the pipeline, combining for 125 projects and nearly 14,850 rooms. Upper upscale developments account for another 40 projects totaling 7,842 rooms, while six luxury projects contribute 1,268 rooms. The largest project under construction is the 814-room Signia by Hilton Indianapolis, positioned adjacent to the Indianapolis Convention Center. In Detroit, Sterling Group is advancing two significant projects: a 600-room JW Marriott at Water Square, currently under construction, and a 600-room Huntington Place Hotel in early planning. In Chicago, Magellan Development Group has the 269-room Lakeshore East Parcel O Hotel and Residence in final planning. An additional 44 projects with a combined 5,253 rooms have yet to be assigned a scale classification.

Over the past 24 months, 110 hotels totaling 13,137 rooms have opened across the Midwest. Recent arrivals include The Dellshire Resort, a 208-room upper upscale property that opened in May 2026, and a 219-room dual-branded Home2 Suites and Tru by Hilton in Madison East, which opened in February 2026. Ann Arbor welcomed two upscale openings — the 139-room AC Hotel downtown and a 139-room Residence Inn on its south side. The Hotel Rambler Montgomery, a 128-room Tapestry Collection property, opened in early January 2026, while markets in Wisconsin and Minnesota added select-service inventory including a SpringHill Suites in Fitchburg and a Candlewood Suites in Mankato.

Lodging Development tracked 195 hotel transactions across the Midwest during the 18-month period ending in December 2025. Because the region spans multiple non-disclosure states, individual sale prices are not publicly available for all trades. Based on documented sale prices and loan data, Lodging Development estimates total transaction volume at approximately $2.57 billion over this period. This figure incorporates actual sale prices where available — covering 67 transactions — and values derived from recorded loan amounts for an additional 72 transactions, applying a loan-to-value ratio based on national hotel transaction data. Notably, 56 transactions lacked sufficient data to include in the volume estimate, meaning actual total volume is likely higher. Among the more prominent trades, The Westin Michigan Avenue in Chicago, a 752-room upper upscale hotel, traded in late 2025 with Vinayaka Hospitality as the buyer. Other notable sales included the 21c Museum Hotel Cincinnati and the Le Meridien St. Louis Clayton, the latter acquired by T2 Hospitality.