Chicago Hospitality Market Report
Hotelier Revenues Climb on Domestic Visitation;
International Travel Rebound Imminent
Domestic and business travel drive performance boost. As a major hub for international travelers, the pandemic’s impact on Chicago’s hospitality sector was more pronounced than in other markets that rely more heavily on domestic visitation. However, the city announced tourism numbers rose 86 percent in 2021 when compared to the previous year. This sharp recovery continued into 2022, with annual hotel revenue up 166 percent year-over-year through May. The return of business travel is an important factor, as average occupancy and nightly rates climbed the fastest during the last 12 months in and around the CBD. With international tourism still below pre-pandemic norms, the lifting of travel restrictions should boost room demand in this segment by year-end.