Chicago's McCormick Place Convention Center and other meeting facilities throughout the city, hundreds of corporations and institutions, and many leisure attractions, such as Navy Pier, Soldier Field, and the Shedd Aquarium, represent the primary sources of demand in the greater Chicago market (Chicagoland). Over the last two decades, Chicago tended to enjoy occupancy levels in the mid-to-upper 60.0% range, except during a national economic downturn. In 2023, occupancy reached the mid-60s, similar to levels recorded in the early 2000s but well below the peak occupancy period of 2013 through 2019. ADR, on the other hand, surpassed the $160 mark in 2023, and RevPAR reached the pre-pandemic peak. Factors contributing to the occupancy gains in 2023 included demand growth driven by the return of citywide conventions and corporate travel. The outlook for 2024 is favorable, with further occupancy growth expected to be driven primarily by commercial demand and the resumption of convention center activity. Furthermore, the breadth of economic anchors in Chicago should bolster the market's economic strength over the long term, although higher office vacancy levels and greater economic concerns are headwinds for the market.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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| ADR Change
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| Market Demand Change
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| Hotel Occupancy Increase/Decrease
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| RevPAR Change
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0.0%
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
Legend
| Significant Value Increase:
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Greater than +10%
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| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Chicago RevPAR
| Year |
RevPAR |
| 2008 |
$83.37
|
| 2009 |
$63.87
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| 2010 |
$69.74
|
| 2011 |
$75.88
|
| 2012 |
$83.55
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| 2013 |
$87.18
|
| 2014 |
$93.38
|
| 2015 |
$99.93
|
| 2016 |
$99.79
|
| 2017 |
$98.00
|
| 2018 |
$97.90
|
| 2019 |
$97.89
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| 2020 |
$100.63
|
| 2021 |
$
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| 2022 |
$
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| 2023 |
$
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| 2024 (f) |
$
|
| 2025 (f) |
$
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| 2026 (f) |
$
|
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