Chicago Hospitality Market Report

Cautious optimism defines Chicago’s lodging sector in 2025. Last year, when hotel occupancy hovered 9 percent below the all-time high, the CBD achieved record RevPAR, buoyed by corporate relocations and robust highway visitation along Interstate 94. City-wide events like the Democratic National Convention and the International Manufacturing Technology Show propelled RevPAR and ADR to historic peaks. Meanwhile, international inbound travel and strong lower-end chain scale demand continued to support fundamentals. High borrowing costs and tighter lending limited new construction to roughly half the long-term average, which aided market absorption. Looking ahead, 2025 faces fewer large-scale events. An anticipated uptick in deliveries, coupled with softer economic growth, could also temper revenue gains. Even so, the market retains a resilient recovery outlook as bookings approach 2019 levels, sustaining investor interest amid shifting supply-demand balances.