Hotel Spending Impact in 2025
Occupancy Rate: 57.38%
According to CoStar, the hotel industry's most trusted data solution for hotel performance, Occupancy is calculated by dividing the number of rooms sold by the rooms available.
In 2025, the occupancy rate in Fargo-Moorhead-West Fargo was 57.83%, down from 61.6% in 2024.
Demand: 1.2 million
According to CoStar, demand is the number of rooms sold in a specific period.
Similarly, demand was off by 6.5% at 1.2 million rooms.
Average Daily Rate: $118.89
The Average Daily Rate (ADR) measures the average rate for rooms sold. It is found by dividing room revenue by rooms sold, according to CoStar.
In 2025, the ADR was $118.89, which was up from 2024's $117.18
Hotel Room Spend: $144 million
In 2024, revenues from hotel rooms were $143,593,441, down from 2024, when room revenues were $155 million.
Tourism Impact Update
Hotel performance in the Fargo-Moorhead area showed some softening compared to last year, with occupancy averaging 57.38%, representing a 7% decrease year-over-year. Overall hotel demand totaled over 1.2 million room nights, down 6.5% compared to the same period last year, reflecting slightly fewer total stays in the market.
Despite declines in occupancy and demand, hotels continued to experience positive price gains. The average daily rate (ADR) increased to $118.89, up 1.5% year-over-year, indicating that properties have been able to maintain rate strength even as overall volume dipped.
Monthly trendlines from CoStar show Fargo’s performance closely tracking statewide and national patterns, with occupancy rising steadily through the spring, peaking in the summer, and then declining through late fall and winter. While 2025 occupancy has generally remained slightly below 2024 levels across most months, Fargo continues to follow broader travel trends seen across Minnesota, North Dakota, and the U.S.
Overall, these results suggest a year of moderate slowdown in visitation volume, but continued resilience in hotel pricing and market stability.