Spotlight On: David Laukkonen, General Manager, Canopy By Hilton Minneapolis
January 2025 — In an interview with Invest:, David Laukkonen, general manager of Canopy By Hilton Minneapolis, said that the healthcare, education, and construction sectors are driving the demand in group business and event services. He also touched on how the hotel has integrated innovative tech to enhance guest experiences, and why Minneapolis’ hospitality market shows steady recovery.
How would you describe the hotel and hospitality industry in Minneapolis, and how is the city doing in terms of occupancy rates?
The Twin Cities region was one of the slower recovery markets in the United States, which has been well-documented. While it took some time, we are now seeing a bounce-back. Supply has remained relatively consistent, with minimal growth over the past year or two, while demand has been increasing steadily. For the upcoming year, we anticipate occupancy to grow by 5%-6%, with rates following a similar trend.
The positive trajectory indicates that, despite the delayed recovery, we are trending in the right direction. Existing properties, especially with limited new supply, are expected to continue flourishing. Current numbers are finally approaching and even surpassing pre-COVID levels, which were record-breaking for this area. It is an encouraging sign.
What measures or initiatives are you implementing to attract guests and ensure that there is year-long demand and occupancy?
We utilize typical marketing channels, including online travel agencies and targeted meta ads. However, we have also placed a stronger emphasis on activations and signature events within the property to attract guests. For example, we partner with musicians on tour, collaborate with local sporting events, and participate in arts and entertainment activities specific to the Twin Cities.
One current initiative is a holiday-themed pop-up bar in our restaurant, which features over-the-top Christmas décor and specialty drinks. We are also planning to launch an underground lounge and a rooftop holiday event for next year. These unique events generate buzz and draw customers to both our restaurant and hotel.
In addition, we have ramped up our social media efforts, including creating TikToks based on trends and working with influencers. Influencers often visit to experience the hotel or restaurant and share their experiences with their followers. For instance, during the holiday season, we have hosted influencers to showcase our pop-up bar and live music events. This approach has been highly effective in boosting brand awareness.
How do you maintain the old school historical vibe of the building with renovations and keeping it up with current market demands and modern standards?
The development company, ownership group, and architectural designers collaborated closely with the Historical Society to preserve the building’s originality and integrity. For instance, many of the wood beams visible throughout the property were part of the original pulley systems used to move equipment between floors over 100 years ago.
Artifacts from the original companies that occupied the building are displayed in the lobby, and informational placards on the exterior provide historical context. These elements allow us to tell the story of the building and its connection to the city.
At the same time, we incorporated modern technologies and amenities seamlessly into the design. The decor reflects a Nordic influence, which aligns with the Twin Cities’ historical ties to Scandinavian culture. This influence is particularly evident in the lobby furniture, rugs, and throws. The result is a space that feels both upscale and familiar, offering a unique experience that resonates with our guests.
In what ways have client expectations shifted in the last few years, and how is Canopy by Hilton Minneapolis addressing these changing expectations?
The biggest shifts we have seen have been in the technological requirements of our guests, which has led Hilton to lean heavily into technology innovation, particularly with its Connected Room concept. This allows guests to control the temperature, lighting, and television directly from the Hilton app on their phone. Guests can even set the room temperature before arriving at the hotel. Additionally, the app enables guests to check in, access their room and elevators, and visit the spa without needing to stop by the front desk.
While some customers still prefer human interaction, we have focused on creating customer service experience for those who may not need or want direct contact with staff. For this, Hilton has introduced third-party messaging systems that allow communication via text, and as of this year, this innovation has been integrated across all Hilton properties. Guests can opt into this service by providing a cellphone number, even without stopping at the front desk. We have also observed that many younger travelers prefer less interaction with staff, and the messaging system provides a direct way to communicate.
Beyond technology, maintaining the basics, such as cleanliness and excellent customer service, is crucial. Cleanliness, in particular, remains the cornerstone of a positive guest experience. When guests feel that the property is well-maintained and offers value for their spending, it enhances their overall satisfaction. We strive to ensure that all guests, whether they are staying in a standard room or a large suite, feel a sense of “Wow, this was worth it.”
Besides the costs of construction and financing, what are the primary challenges for the hotel industry?
The largest challenge, which has persisted for a few years, is changing the perception of the Twin Cities. There is still some stigma surrounding safety in Minneapolis, often based on reports or conversations that people have heard. When we work with companies looking to host conferences or events here, one of the top questions we receive is whether it is safe to be here.
As someone who has lived in this market for most of my life, I can confidently say that Minneapolis is a safe city. Having traveled to many other large markets, I believe the safety concerns are more a perception issue than reality. Our goal is to bring visitors here and provide them with a great experience so they can share positive word-of-mouth feedback. Each guest visit is an opportunity to showcase the Twin Cities as a wonderful and safe destination.
What partnerships are in place with other leisure and tourism stakeholders downtown or regionally to consolidate a sustainable pipeline of hotel guests?
Our proximity to U.S. Bank Stadium, home of the Minnesota Vikings, is a significant advantage. The stadium also hosts large concerts, such as the Taylor Swift concert, where we created a signature suite. This suite, themed around Taylor Swift, gained additional visibility through Hilton’s marketing efforts. Themed signage and immersive experiences made the stay memorable for guests attending the concert.
Another example is our partnership with Red Bull during their Formula 1 demo in front of the stadium. We hosted their parties and signature events, working closely with their marketing team to increase visibility and foot traffic to the property. Events like these attract both local and visiting guests who may not have been familiar with our hotel, providing an opportunity for first-time visitors to experience our property. This exposure often leads to increased brand awareness and repeat business.
We also participate in community events such as Pianos on Parade, where performers play outside our entrance, drawing attention to the hotel. These collaborations are not solely about increasing occupancy during events but also about fostering long-term visibility and attracting new customers.
What is your near-term outlook for Canopy by Hilton Minneapolis and the overall hotel industry in Minneapolis?
Sustained and consistent growth is a primary goal. While this may seem like an obvious answer, it reflects the health of both the property and the city. Consistent growth leads to more development, new opportunities, and stronger market performance. It also reassures investors and contributes to the success of the area overall.
From a brand perspective, we strive to be the best within the Hilton Corporation. Last year, we were among the Top 5 hotels and finished second overall. While awards are not the sole focus, they signify our ability to provide excellent customer service and experiences. Achieving such recognition reinforces repeat business and supports the Twin Cities as a thriving destination.
For more information, please visit:
https://www.hilton.com/en/hotels/mspmipy-canopy-minneapolis-mill-district/
