CHICAGO-Hotel occupancies and room rates here have risen in the first nine months to their highest levels since the recession.
According to figures released by Smith Travel Research, the city's hotel occupancy rate rose to 75.5% in the first nine months of this year, up from 75% a year ago. The hotel industry widely considers a rate of 75% at full occupancy due to the city's harsh winters, according to Crain's Chicago Business.
The nine-month average daily room rate for a Chicago hotel jumped 6% at the end of the third quarter to $187.75 as compared to $177.37 during the same period in 2012.
There are some concerns about overbuilding in the hotel market, particularly with projects such as the Langham Hotel, which is opening in June, and the 1,200-room McCormick Place hotel to name just a few.
“There's clearly some risk,” says Roger Hill, chairman and CEO of Chicago-based hotel consulting and design firm the Gettys Group. “There are definitely some people wringing their hands about the additional supply.” However, he adds the new projects coming on line will not outpace the anticipated increase in demand. See story in Crain's Chicago Business.
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