HVS Hotel Market Report – Grand Rapids, Michigan

Named the number-one “City on the Rise” in 2025 by LinkedIn, Grand Rapids is supported by major healthcare, grocery, and manufacturing employers. Several major developments are set to reshape the city’s landscape and strengthen hotel demand in the years ahead, including a new riverfront amphitheater, a professional soccer stadium, and an airport expansion.

Nestled between Chicago and Detroit and located just 30 miles east of Lake Michigan is Grand Rapids, Michigan’s second-largest city. Named the number-one “City on the Rise” in 2025 by LinkedIn and nicknamed “Furniture City” and “Beer City USA,” Grand Rapids is supported by a diverse economy with major healthcare, grocery, and manufacturing employers. The city is also recognized as one of the nation’s top minor-league sports markets and a popular convention and event destination.

Given these factors, the Grand Rapids hotel market has benefited from significant hotel demand over the last several years, resulting in strong RevPAR levels. Several major developments are set to reshape the city’s landscape and strengthen hotel demand in the years ahead, including a new riverfront amphitheater, a professional soccer stadium, and an airport expansion.

Key Developments Driving Growth Acrisure Amphitheater—Under Construction

Construction of the Acrisure Amphitheater is currently underway on a site just south of downtown on Market Avenue SW. The $184-million outdoor venue broke ground in May 2024 and is scheduled for completion by May 2026, just in time for the summer concert season. With a maximum capacity of 12,000, the amphitheater will be comparable in size to the city’s existing Van Andel Arena and is expected to host a wide range of events that will generate strong leisure and event-related demand for area hotels. The facility is projected to host 57 annual events (including 24 major concerts) and draw roughly 300,000 visitors annually.

Amway Soccer Stadium—Under Construction

The city already boasts a vibrant sports scene, with several professional teams including the Grand Rapids Gold (men’s basketball), Grand Rapids Griffins (men’s hockey), West Michigan Whitecaps (men’s baseball), and Grand Rapids Rise (women’s volleyball). Soon, a fifth team will join that roster: a professional soccer team in the MLS NEXT Pro league.

To support the new team, the 8,500-seat Amway Stadium is under construction downtown on a site adjacent to the David D. Hunting YMCA. The $175-million project broke ground this year and is expected to open by 2027. Once complete, the stadium is anticipated to host 17 professional events and more than 50 additional events annually, with projected attendance exceeding 160,000 visitors per season. Although most attendees will likely not require a hotel stay, the new stadium is expected to contribute some additional hotel demand, primarily from visiting teams and out-of-town spectators.

Gerald R. Ford International Airport Expansion—Under Construction

The Gerald R. Ford International Airport (GRR) is undergoing a $600-million transformation to support the anticipated future growth in the area. The Concourse A expansion was completed in the spring of 2024 and added six gates and new concessions. Future upgrades will include additional parking, the relocation of the air-traffic-control tower, a federal inspection station for international flights, and a consolidated rental-car facility. The multi-phase plan is expected to be completed by 2028. Following this expansion, the airport will be well positioned to support the anticipated visitation increases driven by major area developments.

Other Notable Developments Under Construction

Grand Rapids Public Museum Expansion: The $50-million expansion and modernization project is expected to be completed by 2026. The upgrades are expected to include enhanced ADA accessibility, new assembly space, redesigned outdoor areas, an exterior geologic rock wall, and updates to the museum’s existing exhibits.

Joan Secchia Children’s Rehabilitation Hospital: This $70-million children’s rehabilitation facility is under construction and is expected to open in 2026. The three-story building will be connected to Mary Free Bed’s main hospital via a skybridge over Wealthy Street.

Meijer Sports Complex Expansion: Construction of the $13.5-million expansion began in late 2024 and is expected to be completed by January 2026. The expansion will include a championship softball field, two flexible-use diamond fields, 20 pickleball courts, and enhanced amenities.

Switch Data Center Expansion: In 2015, Switch purchased the former Steelcase Pyramid and converted it into a data center. The company is currently expanding on the site, with the investment in the new building expected to total $700 million upon completion.

Planning Stage

Grand Valley State University’s Blue Dot Lab (Eberhard Center Renovation): Grand Valley State University plans to renovate its Eberhard Center in Downtown Grand Rapids as part of a $140-million project reportedly set to begin in the near term. The Blue Dot Lab will be a new hub for talent, technology, and innovation.

Fulton & Market Mixed-Use Development: This seven-acre, $740-million, mixed-use development will feature nearly 700 residential units, a boutique luxury hotel, and over 53,000 square feet of retail space.

Grand River Restoration Project: Dam removals and channel restoration are planned to restore river flow and recreation, with $36.7 million already committed to address Lower Reach improvements.

Grand Rapids Aquarium: An aquarium is in the early planning stages, with development costs expected to total upwards of $350 million; the aquarium would be expected to generate a $2.9-billion net economic impact on Kent County over ten years.

While most of these developments could contribute to strengthening hotel demand, the proposed Grand Rapids Aquarium would become a major demand generator in Kent County and have a significant impact on the county’s tourism and lodging market.

Snapshot of Kent County’s Hotel Supply

Nearly Half of Hotels in the County Are Limited Service

Source: STR
 
Hilton Leads the County with 25% of Hotel Rooms

Source: STR

Proposed Hotel Supply – Kent County

Source: STR

Based on STR data illustrated in the charts above, Hilton represents the largest share of hotel rooms in Kent County, accounting for roughly 25% of the total supply. In contrast, Hyatt brands remain underrepresented, comprising only about 2% of existing rooms. Limited-service hotels dominate the market, representing approximately 42% of total room supply, while boutique and select-service properties make up just 13% altogether. Moreover, roughly 1% of the county’s total hotel inventory is under construction; however, several other projects are proposed or rumored for future development. Overall, the limited development pipeline, combined with gaps in brand and service-level representation, could present opportunities for hotel developers and investors.

According to Experience Grand Rapids, Kent County hotels sold 2.3 million room nights in 2024, marking a 5.0% increase over 2023 and 10.5% growth from the pre-pandemic record. This trend demonstrates that demand growth remains strong and further opportunity is present as new demand drivers enter the market.

Looking Ahead

The outlook for the Grand Rapids and greater Kent County lodging market remains positive. All metrics, including occupancy, ADR, and RevPAR, have increased in the last year, with demand growth continuing to outpace supply growth. As major developments reach completion, hotel demand is expected to strengthen further in the coming years.

At HVS, we turn data into powerful insights that drive your success. For more information about the Grand Rapids market or for help making informed investment decisions that align with your goals and risk tolerance, please contact Angela Lahti.

Sources

https://www.experiencegr.com/media-articles/post/visitorship-hit-record-levels/

Grand Rapids named No. 1 city on the rise by LinkedIn

https://www.linkedin.com/pulse/linkedin-cities-rise-2025-25-fastest-growing-us-metros-jobs-jqiqc/?trackingId=P280tmazRlqMb4lEQV63Ag%3D%3D

https://www.grandaction.org/current-projects/acrisure-amphitheater

https://www.mlive.com/news/2025/03/see-inside-michigan-amphitheater-construction-thats-turning-heads-nationwide.html

https://static1.squarespace.com/static/5fe2327dad6d7024772306cf/t/668c56352716ce03a7f15577/1720473142038/Amphitheater+FAQs.pdf

https://www.experiencegr.com/things-to-do/outdoors-and-sports/sports/

https://www.mlive.com/news/grand-rapids/2024/11/new-8500-seat-grand-rapids-soccer-venue-to-be-named-amway-stadium.html

https://www.grr.org/news/terminal-enhancement-project-groundbreaking

https://www.mlive.com/news/grand-rapids/2024/11/data-center-south-of-grand-rapids-plans-700-million-expansion.html

https://www.datacenterdynamics.com/en/news/switch-plans-second-expansion-of-pyramid-data-center-campus-in-grand-rapids-michigan/

https://www.wgvunews.org/news/2023-11-03/grand-valley-state-university-receiving-30-million-state-supplemental-funding-for-planned-downtown-grand-rapids-tech-hub

https://www.grandriverfront.com/news/gvsu-blue-dot-lab

https://www.woodtv.com/news/grand-rapids/grand-rapids-receives-egle-permit-for-grand-river-restoration-project/

The Project

https://www.woodtv.com/news/grand-rapids/city-approves-50m-expansion-to-gr-public-museum/

Expansion Campaign

https://www.mlive.com/news/grand-rapids/2025/08/hello-grand-rapids-community-gets-first-glimpse-at-zoos-massive-waterfront-of-aquarium.html

https://jbzoo.org/2024/05/14/study-shows-john-ball-zoo-aquarium-should-be-located-in-kent-county/

https://www.fox17online.com/news/local-news/grand-rapids/breaking-ground-construction-begins-on-michigans-1st-childrens-rehab-hospital

https://www.mlive.com/news/grand-rapids/2024/04/meijer-gives-3m-to-new-grand-rapids-childrens-rehabilitation-hospital.html

https://www.mlive.com/news/grand-rapids/2024/10/enormous-sports-complex-in-west-michigan-breaks-ground-on-135m-expansion.html

https://www.grandriverfront.com/developments/fulton-and-market

About Angela Lahti

Angela Lahti is a consulting and valuation Senior Manager with the HVS Detroit office. In May 2018, Angela graduated from the University of Florida with a Bachelor of Arts in Business Administration specializing in Travel and Tourism Management and a minor in Real Estate. Following graduation, Angela moved to Colorado to pursue her passion for hospitality by working at Crested Butte Mountain Resort. She held various positions, including Vacation Sales Agent, Air Travel Specialist, and Travel Services Assistant Manager. Before joining HVS, Angela also worked as a bookkeeper in Gunnison, Colorado, managing the accounting and administrative needs of several local restaurants and retail stores. Contact Angela at (813) 361-3939 or [email protected].