Dietrich Jessen, Former General Manager, Hotel Indigo
Dietrich Jessen, former general manager of Hotel Indigo, spoke with Invest: about the specific ways the hotel differentiates itself from competitors to provide the best possible guest experience. This includes emphasizing guest relations and committing to operating a truly full-service, guest-oriented establishment.
From a growth perspective, what have been some of the major highlights and key milestones for Hotel Indigo over the past year?
The Hotel Indigo in downtown Minneapolis has a rich and evolving history. Previously known as the Crowne Plaza Hotel, it was a prominent full-service property and a cornerstone of the Northstar Center, which spans an entire city block in the heart of the city. After the Crowne Plaza closed in 2020, our company acquired the building in 2021. Recognizing the value of maintaining IHG’s presence in downtown Minneapolis, we transformed the property into a Hotel Indigo, a brand dedicated to celebrating the unique stories of its neighborhoods. Our mission is to foster a sense of community by connecting with Minneapolis’ vibrant culture and history.
As the travel industry rebounds, we are seeing encouraging growth compared to the challenging benchmarks of 2020. While business travel has not yet fully returned to pre-pandemic levels, there has been a notable rise in large conferences and corporate travel. Additionally, small group bookings have started to replace the reliance on virtual meetings, even as booking windows remain shorter than before. This resurgence of face-to-face connections has been a driving force behind the hotel’s growth over the past year.
What sectors or sub-industries are driving demand for your events facilities?
The Northstar 8 meeting space debuted toward the end of 2024, marking an exciting addition to our offerings. Hotel Indigo partners with Northstar 8 to provide seamless access to both event spaces and accommodations, creating a comprehensive solution for gatherings of all sizes. A $250 million capital injection of hotel, meeting and office space, and apartments revitalized the entire block, delivering significant enhancements to both Northstar 8 and Hotel Indigo.
We’ve seen a strong resurgence in the financial services sector, which is a driving force in downtown Minneapolis. Senior leadership summits and team celebrations are making a notable comeback, reinforcing the sector’s influence on our hotel’s clientele. With the financial industry as the cornerstone of our downtown business landscape, these events play a pivotal role in shaping our success.
How would you describe the hotel and hospitality industry in Minneapolis?
One unique characteristic of Minneapolis is the abundance of downtown hotel rooms, a supply that was well-justified by the high pre-pandemic demand. The city boasts a remarkable number of corporate headquarters per capita, including major names like Target, Thrivent, Ameriprise, and U.S. Bank, which have historically driven business travel.
While January and February tend to be challenging months for the hotel industry here due to the cold weather, occupancy rates have remained relatively strong. However, the primary challenge in this market lies in maintaining competitive rates. While it’s possible to boost occupancy by targeting leisure travelers at a lower rate, this often comes at the expense of profitability, cash flow, and overall valuation. For our hotel specifically, we have consistently performed well in terms of occupancy, but we continue to focus on balancing rate and revenue for sustainable growth.
What role does Hotel Indigo’s strategic location at the heart of Minneapolis play when it comes to attracting guests?
Minneapolis is a city of distinct neighborhoods, each with its own character. The North Loop, for example, is known for its boutique hotels and vibrant atmosphere but has fewer businesses. In contrast, our hotel is ideally located in the Central Business District, surrounded by skyscrapers and at the heart of the city’s commerce. There’s truly no better location for both business and leisure travelers.
We’re uniquely positioned with major bus stops right outside our door, providing convenient access to suburban areas, and we’re just one block from the city’s primary rail system. Additionally, our hotel is part of the iconic skyway system—an interconnected network of pedestrian tunnels that allow people to navigate downtown without stepping outside. In fact, our hotel holds a special place in history as the birthplace of Minneapolis’ skyway system, making us a vital part of the city’s story.
What measures or initiatives is Hotel Indigo implementing to ensure there is year-long demand and occupancy?
While maintaining an attractive rate is important, preserving rate integrity is equally vital, and we take great pride in the exceptional level of service we provide. In today’s hospitality landscape, it’s increasingly common to encounter hotels where personalized service is no longer a priority. At Hotel Indigo, we refuse to follow that trend. From the top down, we emphasize the importance of greeting every guest and taking the time to create meaningful interactions. In a competitive market, service, quality, and consistency are the key factors that truly set a hotel apart.
Our commitment is to consistently deliver a five-star experience within the framework of a four-star property. We achieve this by maintaining the highest cleanliness standards and ensuring exceptional service from our team. At Hotel Indigo, we focus intently on the aspects we can control, always striving to exceed expectations.
To support stability, we prioritize securing as many contracted rates as possible, offering guaranteed value for our customers while creating consistency for the hotel. Additionally, we are expanding our reach by targeting more group bookings and embracing third-party booking platforms, which are becoming an increasingly popular choice for travelers. By staying adaptable and focused, we continue to elevate the guest experience while driving sustainable success.
In what ways have client expectations shifted in the last few years, and how is Hotel Indigo addressing these?
Guest expectations have shifted because, unfortunately, much of the hospitality industry no longer delivers the same level of service it once did. Simple gestures, like asking guests how they’re doing, often catch people off guard because they’ve become so rare. Cleanliness, however, remains a top priority for travelers, especially in the wake of the pandemic. I’m proud to say that our hotel currently holds one of the highest cleanliness scores among all Hotel Indigo properties, reflecting our unwavering commitment to providing a spotless and welcoming environment.
