$27M Hotel Sale Signals Confidence in Woodbury, Minnesota
Two well known hotels in Woodbury, Minnesota have officially changed hands in a $27 million transaction that highlights continued investor interest in the east metro.
The Residence Inn and Courtyard by Marriott, both located on Radio Drive near Interstate 94, were purchased on December 4 by Dr. Prem Kumar and his partners.
Why Woodbury Attracts Investors
Woodbury has become one of the strongest suburban markets in the Twin Cities. Its proximity to 3M’s global headquarters in Maplewood provides steady corporate travel demand.
According to the new owner, both hotels operate at close to 80 percent occupancy. That is a strong performance level for Minnesota’s hospitality market.
Each hotel is expected to generate roughly $5 million in annual revenue. The investor is targeting a 10 percent capitalization rate by 2026.
For commercial real estate watchers, that indicates confidence in long term cash flow and market stability.
Planned Renovations and Upgrades
While the hotels are only about six years old, no major improvements have been completed since opening.
The new ownership group plans cosmetic upgrades including new furniture, carpet, wallpaper, and refreshed design elements. Some improvements are required by Marriott’s brand standards, but management plans to exceed those requirements.
The goal is to maintain high occupancy and remain competitive in the Twin Cities hospitality market.
The Bigger East Metro Picture
Woodbury continues to benefit from strong demographics, corporate presence, and highway accessibility. Despite higher labor and insurance costs in Minnesota compared to neighboring states like Wisconsin, investors are still acquiring assets here.
This transaction reinforces that the east metro remains attractive for both residential and commercial growth.
If you’re considering buying or selling real estate in Woodbury, Lake Elmo, Afton, or the broader Twin Cities area, staying on top of local investment trends matters. Reach out anytime if you want to talk strategy.
