Minneapolis Hotel Ventures Acquires Radisson RED
The 164-room downtown property was purchased from Choice Hotels by a partnership including Lion Hotel Group.
Updated on Oct. 23, 2026 in Hotels
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Minneapolis Hotel Ventures and Lion Hotel Group have completed the acquisition of the 164-room Radisson RED hotel located in downtown Minneapolis. Lion Hotel Group is now overseeing the site's daily operations and has committed to retaining the current staff.
Why it matters
The deal signals investor confidence in the downtown hotel market despite existing financial challenges. New ownership aims to stabilize the property and transition it toward positive cash flow.
The 164-room property at 609 S. Third St. currently carries a $700,000 negative cash flow. While local occupancy remains flat, average daily rates for hotels in the downtown area have increased by 3%.
The players
Lion Hotel Group
This hospitality management firm operates multiple properties across Minnesota, including sites in Bloomington and Duluth.
Minneapolis Hotel Ventures
This investment group partnered with Lion Hotel Group to acquire the Radisson RED hotel.
Choice Hotels
This major lodging franchisor was the previous owner of the Radisson RED location.
Marcus & Millichap
This commercial real estate brokerage firm arranged the transaction between the sellers and the new ownership group.
The details
Marcus & Millichap facilitated the sale of the asset, which was formerly held by Choice Hotels. The management team plans to leverage local market opportunities to rectify the current operating deficit.
Timeline
The sale of the hotel was officially reported on October 23, 2026.
Travel Outlook
The acquisition reflects a strategic effort to navigate the downtown Minneapolis hotel occupancy stagnation trend. By focusing on operational efficiency, the new owners are positioning the asset against a backdrop of flat demand and rising average daily room rates.
Guests currently holding reservations at the Radisson RED should expect business to continue as usual under the new management. The transition aims to improve overall service quality without immediate disruptions to existing bookings.
The takeaway
Investors looking at downtown hospitality must balance recent rate growth against ongoing occupancy plateaus. Success in these acquisitions typically requires significant operational shifts to turn around properties currently operating in the red.
Further reading
For more information on the local lodging market, visit Hotels.
Source note: This article includes information reported by Finance & Commerce.
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