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Market Report

Chicago Hospitality Market Report

Midyear 2023

Slim Supply Additions Benefit Properties Near McCormick Place;
Luxury Operations Still Improving

Reduced deliveries and returning conventions aid performance. Apart from 2020 when roughly 1,100 rooms were completed, this year’s delivery slate will be the metro’s smallest since 2014. A still-recovering metrowide occupancy rate, in addition to elevated construction costs, limit new arrivals in 2023. Existing properties are poised to benefit, especially as large events are returning to the market. McCormick Place is garnering a greater reach this year. Based on data from the venue, hotel stays tied to events here were up 70 percent in the first quarter relative to the same span in 2022. Following last year’s 1.5 million attendees, the convention hall anticipates an additional 1 million in 2023. The increase in bookings are benefiting hotels around O’Hare and in Chicago proper, with both area’s occupancy rates on pace to improve 270 basis points this year. 
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