Chicago Hospitality Market Report

Business travel nears full recovery. In 2023, overnight work-related visits to the metro totaled 8.1 million, coming within 7 percent of the 2019 level. Similarly, over the year ended in June 2024, hotel room demand in Central Chicago and the West Side was 8 percent below the all-time high. Despite a dynamic employment situation this year, business travel to the metro is on the rise amid local company expansions, helping improve overall hotel fundamentals. From April to June 2024, the city of Chicago’s office sector posted its third-strongest quarter of net absorption on record. With these move-ins increasing the number of people traveling to Central Chicago for interviews and meetings, the area’s RevPAR surpassed its February 2020 level this May and continued to grow through June. Momentum will remain near term, with companies slated to occupy over 1.9 million square feet of offices here during 2024’s second half.