Chicago Hotel Market Supply Up; Development Pipeline Down

Bryan Younge, EVP and specialty practice leader of the Hospitality, Gaming & Leisure Group for Newmark Knight Frank

CHICAGO—The Chicago hotel market has seen increased supply come to market of late, but this sector is now experiencing a declining pipeline of new projects, according to a report released by Newmark Knight Frank.

In its third quarter report on Chicago’s hotel market, Bryan Younge, EVP and specialty practice leader of the Hospitality, Gaming & Leisure Group for Newmark Knight Frank, says “The acceleration of new supply over the past quarter is due to completions, while supply in the pipeline actually seems to be decelerating. The reason for the recent influx of new product is due to strong economic conditions two to three years ago when these projects were being conceptualized and/or entering into the planning phases.”