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Immigration crackdown drives hotel performance in the Twin Cities

Short-term gains complicate the region’s continued recovery
Residents and businesses reacted to the surge in federal agents in the Twin Cities.(Stephen Maturen/Getty Images)
Residents and businesses reacted to the surge in federal agents in the Twin Cities.(Stephen Maturen/Getty Images)
CoStar Analytics
February 24, 2026 | 3:09 P.M.

In December 2025, the launch of a major U.S. Immigration and Customs Enforcement initiative, Operation Metro Surge, led to an influx of over 3,000 immigration agents to the Twin Cities. The sudden spike in affiliated personnel in the region led to a sharp, immediate increase in lodging demand.

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News | Immigration crackdown drives hotel performance in the Twin Cities